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On August 16th, according to a report by the U.S. military newspaper Stars and Stripes on the 14th, the U.S. Navy recently discovered an unidentified drone at its largest base in Italy and implemented base-wide security measures. The report stated that the small drone was discovered on the 13th at a support point at the U.S. naval base, prompting security forces to take precautionary measures. Before and after the drones discovery, the U.S. naval base issued a brief shelter-in-place order at a location approximately 13 miles (21 kilometers) from the incident site. It is currently unclear whether this shelter-in-place order was related to the drone discovery, or whether a similar order was issued at the support point.August 16th - At 12:10 PM Beijing time on August 16, 2026, my country successfully launched 24 low-Earth orbit satellites for its satellite internet service using a Long March-12 carrier rocket from the Hainan Commercial Space Launch Site. The satellites successfully entered their predetermined orbits, and the launch mission was a complete success.According to the Jerusalem Post: The Israel Defense Forces killed senior Hezbollah commander Abu Hassan Alaa in a weekend attack on the Deir Zahrani region in southern Lebanon.August 16th - The 2026 Wenchang International Aerospace Forum will be held in Wenchang, Hainan from August 24th to 26th, showcasing the latest achievements of Hainans aerospace industry. The forum aims to seize the new opportunities presented by the industrialization of reusable rockets, gather global aerospace resources, and help strengthen the rocket, satellite, and data chains, as well as the "aerospace+" industry, building a comprehensive and multi-layered aerospace industry ecosystem. Hainan will fully promote the implementation of key projects, accelerate the formation of high-density, high-reliability, and low-cost commercial launch capabilities, and efficiently support the "hundreds of rockets, thousands of satellites" mission.August 16th - According to Indonesian rescue official Shafii, as of 9:00 AM on the 16th, the death toll from the 7.7 magnitude earthquake in Indonesia has risen to 51. According to the China Earthquake Networks Center, a 7.7 magnitude earthquake struck off the coast of Flores Island, Indonesia, on the morning of the 15th local time, with a focal depth of 20 kilometers. The tsunami warning triggered by the earthquake has been lifted. According to the Chinese Consulate General in Denpasar, the earthquake caused minor injuries to three Chinese citizens.

Gold prices rise when the Fed tightens and the dollar falls

Skylar Williams

Oct 19, 2022 14:25

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Gold prices rose moderately on Wednesday, extending small gains into a third session as dollar pressure eased. However, hawkish remarks from Federal Reserve officials halted any price advances.


As of 19:20 EST, spot gold rose 0.1% to $1,653.49 per ounce, whereas gold futures rose 0.2% to $1,658.90 per ounce (23:20 GMT). Both instruments spent a second day above the important support level of $1,650, following the dollar's decline.


This week, the dollar index is trading roughly 1% lower as risk appetite has strengthened in reaction to a series of strong Wall Street earnings. Following a run of hawkish comments from Federal Reserve officials, the dollar appeared to have stabilized on Tuesday.


Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, indicated that if underlying inflation does not reduce, the Fed could hike its target rate above 4.75 percent. Despite a series of significant rate hikes this year, inflation in the United States remained stubbornly close to its highest level in forty years.


Raphael Bostic, president of the Federal Reserve Bank of Atlanta, underlined the need to reign in inflation, noting the impact of rising interest rates and prices on the labor market.


Following Bostic and Kashkari's remarks, U.S. Treasury yields climbed as traders anticipated future hawkish Federal Reserve activities. In addition, the markets are pricing in a nearly 100 percent chance that the Federal Reserve will raise interest rates by 75 basis points at its fourth consecutive meeting in November.


Earlier this year, the price of gold reached its highest level in the previous two years. Nonetheless, as interest rates rose, the opportunity cost of owning gold increased considerably. Given the Federal Reserve's lack of willingness to halt rate hikes, it is projected that this pressure will persist in the near future.


Following three consecutive sessions of decline due to expectations of a decline in demand, copper prices rose marginally on Wednesday. Rio Tinto (NYSE:RIO) and BHP Group (NYSE:BHP) projected a near-term fall in metal demand, clouding the outlook for industrial metals this week.


According to the world's two largest miners, sluggish economic growth and heightened geopolitical tensions would certainly disrupt supply chains and reduce metal demand.


Copper futures rose 0.1% to $3.3655 per pound, but are currently down 1.7% on the week.


As fears of a U.S. recession increased, China's statement that it will not adjust its zero-COVID policy was the strongest source of selling pressure on the precious metal.

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