EUR/USD 1.13832
0.121%
Gold 4087.85
0.844%
Oil 83.123
-6.122%
USD/JPY 163.653
-0.119%
GBP/USD 1.33124
-0.063%
GBP/JPY 217.868
-0.181%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The U.S. June durable goods orders month-on-month rate will be released in ten minutes.Shares of U.S. airlines rose in pre-market trading as international crude oil prices fell sharply. Delta Air Lines rose 2.7%, JetBlue Airways rose 2.9%, Southwest Airlines rose 3.6%, American Airlines rose 4%, Alaska Airlines rose 3.2%, and United Airlines rose 3.6%.Saudi Ministry of Defense: Drones originating from Iraq attempted to attack Saudi oil facilities.On July 27th, at the media roundtable of the 2026 World Intelligent Connected Vehicles Conference, Su Guobin, Deputy Director of the Beijing Municipal Bureau of Economy and Information Technology, introduced that in the first half of 2026, the penetration rate of L2-level combined assisted driving in new passenger vehicles in Beijing reached 77.5%, higher than the national average of 70%. BAIC Jihu Alfa S became one of the first mass-produced L3-level conditionally automated driving models in China, taking the lead in achieving legal road use and commercialization of high-level autonomous driving. Relying on the nations first high-level autonomous driving demonstration zone, Beijing has issued over 1,500 test licenses, with safe testing mileage exceeding 65 million kilometers. Regarding the coordinated development of the Beijing-Tianjin-Hebei region, Beijing is jointly building an intelligent connected new energy vehicle technology ecosystem port with Tianjin and Hebei, attracting over 200 companies in the industry chain, with 53 signing agreements. Next, Beijing will focus on four aspects: industrialization of high-level autonomous driving, construction of "dual intelligence" 4.0, breakthroughs in core technologies, and industrial synergy in the Beijing-Tianjin-Hebei region, to create a world-class industrial cluster.S&P downgraded Bangladeshs outlook to negative due to ongoing economic risks; rating remains unchanged.

Gold Price Prediction: XAU/USD bears at $1,650 on Fed hawkishness and China news

Daniel Rogers

Sep 19, 2022 14:34

 161.png

 

During early Monday morning in Europe, the gold price (XAU/USD) maintains a position close to the intraday low at $1,670. In doing so, metal prices endure the weight of a stronger U.S. dollar amidst a sluggish session caused by Japanese and British vacations. The cause may be related to the Fed's hawkish bets and China-related news stories.

 

US Dollar Index (DXY) reverses a two-day slump while posting intraday gains of 0.18 percent at 109.85 as of press time. Indicators of the U.S. dollar's value versus the six major currencies have recently been buoyed by the University of Michigan's September consumer sentiment report and the market's positive expectations on the Fed's next move. Consequently, the probability of a 75-basis-point (bps) rate hike by the Federal Reserve increased to 80%, while the market's estimates of a one-percentage-point increase in the Fed rate rose to 20% at the latest.

 

US President Biden stated elsewhere, "I'm more positive than I've been in a long time." The national leader also claimed that inflation will be brought under control. On the same line are the covid updates from China, which have unlocked Dalian and Chengdu while observing zero coronavirus cases in Beijing and one, as opposed to zero the day before, outside of Shanghai's quarantine zone. However, US President Biden's willingness to support Taiwan in the event that China assaults Taiwan and hawkish expectations for the Federal Reserve appear to weigh on the steel price ahead of the major monetary policy pronouncements.

 

In addition, the People's Bank of China (PBOC) reduces the 14-day reverse repo rate by 10 basis points to 2.15 percent. "With no maturing reverse repos on Monday, the Chinese central bank injects 12 billion yuan," reports Reuters. The same might have indicated that the dragon nation is not in recovery mode and requires more rate cuts than rate raises, which could have caused the gold price to plummet. The cause is China's position as one of the world's largest gold consumers.

 

In light of this, the S&P 500 Futures post modest losses while mirroring Wall Street's Friday close. Notably, the selling in Japan curbs bond movements in Asia, but yields are robust near the multi-day high due to fears of a recession and hawkish Fed views.

 

Moving forward, a light economic calendar and important market holidays may limit intraday XAU/USD price fluctuations. However, bears are expected to maintain control because to aggressive Fed expectations, which, if dashed, might defy the bearish chart pattern and spark the long-awaited rally.

Suggestion