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September 11th - According to the Financial Times, Dubai is planning to place parts of its new airport underground to protect against potential future drone or missile attacks. Despite the ongoing war with Iran, the city is pushing forward with its expansion plans. Dubai Airports CEO Paul Griffiths stated that critical infrastructure such as fuel storage tanks could be placed underground, while other areas may require further reinforcement. He said, "Some infrastructure may need a certain degree of reinforcement to cope with potential future activities and make it more resilient." He indicated that other options for enhancing the airports resilience, such as underground fuel storage, are being considered during the design process. "Its about the trade-off between the likelihood and consequences (of an attack), and an appropriate risk assessment." He insisted that the construction of this large airport will not be scaled back due to the war.On September 11, Tencent Music (01698.HK) announced the completion of its public offering of US$1 billion in principal amount of senior unsecured notes on September 10, 2026 (Eastern Time). This includes US$500 million in notes with a coupon rate of 5.050% due in 2031 and US$500 million in notes with a coupon rate of 5.65% due in 2036. These notes are registered under the U.S. Securities Act of 1933 (as amended) and are expected to be listed on the Hong Kong Stock Exchange on September 11, 2026. After deducting underwriting discounts and commissions and estimated offering expenses, the company received net proceeds of approximately US$992 million from the offering. The company intends to use the net proceeds from the offering for general corporate purposes, including refinancing of offshore debt and share buybacks.According to the Financial Times, the EU is seeking new ways to access frozen Russian assets.On September 11, two US officials stated that Saudi Crown Prince Mohammed bin Salman called President Trump twice on Thursday, urging him to launch an attack on the Houthi rebels after the group seized a strategic coastal city in Yemen, bringing it closer to the Bab el-Mandeb Strait. Trump rejected the request, and US officials emphasized that the government currently has no plans for direct intervention in the Houthi campaign. With Iran already disrupting traffic in the Strait of Hormuz, the Houthi control of the Bab el-Mandeb could give Tehran significant new leverage to pressure the US and its Gulf allies. The US, concerned about the rapid escalation of the situation in Yemen, is increasing its support for Saudi Arabia while simultaneously trying to avoid direct military intervention. Saudi Arabias request for direct US intervention marks a sharp reversal of its stance in July, when Riyadh told Washington it could handle the Houthis on its own. However, as the fighting intensified, Saudi Arabia began seeking increasing support.According to the Financial Times, a meeting between Iran and Gulf states is scheduled for next Monday in Salalah, a coastal city in Oman, according to two sources familiar with the matter. One of the sources said that details have not yet been finalized, but some countries have confirmed their attendance, and the meeting is expected to proceed as scheduled.

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

Daniel Rogers

Sep 19, 2022 14:34

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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.

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