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On June 17, Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), stated that the CSRC will continue to deepen the reforms of the ChiNext and Innovation Boards, implement the strategic deployment for developing future industries, and support the listing of more "hard technology" companies in fields such as quantum technology, biomanufacturing, and androids. At the same time, the CSRC will orderly promote the deepening of reforms on the ChiNext board, increase support for new consumption and modern service industries, and better serve the development of growth-oriented innovative and entrepreneurial enterprises.On June 17, Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), stated in his keynote speech that the CSRC strongly supports mergers and acquisitions (M&A) and refinancing of listed companies. He further emphasized the need to stimulate M&A activity, deepen refinancing reforms, and support eligible Hong Kong-listed companies to list domestically.On June 17, Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), stated that the CSRC will release guiding opinions on regulating the development of artificial intelligence in the capital market at an appropriate time.The SC crude oil futures contract fell 4.00% intraday, currently trading at 508.50 yuan per barrel.On June 17th, the "Action Plan" proposed to comprehensively explore the development of offshore financial business when conditions are ripe. It called for exploring and optimizing offshore lending business models, continuously enriching offshore banking products and services, and studying the feasibility of conducting offshore financial asset transfer business. The plan also explored the development of offshore asset management business, supporting various asset management institutions in developing and designing asset management products that meet customer needs and international compliance requirements, and conducting overseas asset allocation. Furthermore, it proposed exploring the steady and orderly development of family trusts, family offices, and other businesses to create a high ground for offshore wealth management.

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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