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On June 12, Iranian Foreign Ministry spokesman Baghae stated on the 11th that all matters concerning the US-Iran agreement were speculation. To date, Iran has not reached a final conclusion on the agreement. Baghae also stated that the situation in the Strait of Hormuz has become more insecure due to US actions. Baghae further stated that Qatar and Pakistan are actively playing a mediating role, but US actions have affected the diplomatic process. He said that Iran was aware of the progress of the negotiations from the beginning, and most of the text of the agreement was completed, but the US has continuously changed its position. Iran has proven that it will never compromise on issues that it considers "red lines."June 12 - According to a report by Iranian state television on the 11th, a spokesperson for the Iranian Foreign Ministry stated that Iran has not yet reached a final conclusion on the Iran-US agreement, and all reports from the outside world regarding the agreement are speculation, with no details yet finalized.Iranian Foreign Ministry Spokesperson: Once we reach a conclusion that the text of the memorandum of understanding can safeguard the interests of the Iranian people, we will release it.Iranian Foreign Ministry spokesman: If Iran intended to abandon its principled position under pressure and threats, we would have done so a year ago.Iranian Foreign Ministry spokesman: All matters concerning the agreement are speculation, and no final decision has been reached.

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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