EUR/USD 1.14038
-0.067%
Gold 4099.06
-0.164%
Oil 72.290
0.387%
USD/JPY 162.336
0.152%
GBP/USD 1.33460
-0.094%
GBP/JPY 216.659
0.075%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
July 8 (Futures News) – According to foreign media reports, Chicago Board of Trade (CBOT) corn futures closed higher on Tuesday, with the benchmark contract rising 1.3%, mainly reflecting the potential for high temperatures in the Midwest to affect crop growth and a surge in international crude oil prices. International crude oil futures rose sharply on Tuesday, influenced by reports of attacks on ships near the Strait of Hormuz, which pushed up prices for soybeans and corn, widely used in biofuels. The latest weather models indicate that high temperatures are likely in the Midwest and Central Plains regions, lasting until mid-July, when most corn crops will be in pollination. An analyst stated that weather map data shows a strong heat wave expected in the Corn Belt from this weekend until July 15th. He added that crops in Europe have already been affected by the heat, increasing risk premiums in the corn market.Japans seasonally adjusted current account balance for May was 30.645 billion yen, below the expected 3.2167 trillion yen and the previous months 4.2111 trillion yen.Japans trade deficit in May was 6.9 billion yen, compared to a forecast of -221.9 billion yen and a previous figure of 395.7 billion yen.1. Meta launches Muse image generation tool. 2. Samsung begins mass production of next-generation enterprise-grade SSDs for Nvidias Vera Rubin. 3. SpaceX AI plans to release a new model in collaboration with Cursor as early as Wednesday. 4. Amazon will issue eight tranches of investment-grade bonds, raising at least $25 billion. 5. BrainTiger Technologys "Sanquan" brain-computer interface system initiates GCP registration clinical trials. 6. Ministry of Industry and Information Technology: my countrys humanoid robot production is expected to exceed 100,000 units this year. 7. National Development and Reform Commission: Sales of AI smartphones and AI computers are expected to surpass non-AI products for the first time this year. 8. Alipay AI Open Platform launched; merchants can connect to mobile phones, in-vehicle systems, and AI glasses through "Abao". 9. my countrys first 5-meter-class reusable rocket was transported to the launch pad; the Long March 10B Y1 awaits launch window. According to the Wall Street Journal, the U.S. Department of Agriculture informed the White House of Walmarts (WMT.N) price-cutting plan. Trump tweeted on Monday that this was the result of government pressure. Minutes later, Walmart issued a press release stating that it would lower prices on thousands of items to help consumers.

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