EUR/USD 1.13438
-0.324%
Gold 4061.09
-1.194%
Oil 72.015
-1.205%
USD/JPY 161.727
0.101%
GBP/USD 1.31709
-0.243%
GBP/JPY 213.014
-0.137%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On June 24, it was reported that the IPO application status of Suzhou Intermod Technology Co., Ltd. on the ChiNext board has changed to "under inquiry," with Huatai United Securities as the sponsor.On June 24th, the Ministry of Commerce and seven other departments formulated the "Special Action Plan for Rectifying the Illegal Recycling and Dismantling of End-of-Life Motor Vehicles." The plan, now issued, mentions rectifying the illegal sale of parts from end-of-life motor vehicles. It calls for investigating and punishing, according to law, acts such as selling used new energy vehicle power batteries to organizations or individuals other than recycling service outlets or comprehensive utilization enterprises, refusing to report traceability information or submitting false information, and selling or reselling dismantled three-way catalytic converters to enterprises without processing qualifications. The plan also involves verifying the parts registration ledgers of end-of-life motor vehicle recycling enterprises, and for those with a large number of missing parts, investigating whether they cooperated with illegal recycling and dismantling "black workshops," facilitating the receipt of scrapped vehicles with partially dismantled parts and issuing "recycling certificates," etc. Furthermore, it supervises the standardized use of the national mark for remanufactured automotive parts, and investigates and punishes the illegal refurbishment of the "five major assemblies" and three-way catalytic converters of end-of-life motor vehicles, as well as the sale of substandard remanufactured parts without the "remanufactured product" label.The Ukrainian military has attacked a natural gas processing plant and a helium plant in Russias Orenburg region.Bilibili (09626.HK) announced a new $300 million share buyback program, under which the company can repurchase up to $300 million worth of its own shares within 24 months from the date of this announcement.The German DAX index fell by 1.00% on the day.

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