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According to the Wall Street Journal: U.S. officials revealed that Iran launched an attack on a U.S. Navy ship on Monday, but the U.S. military has not publicly confirmed it. This comes after Iran launched ballistic missiles at a U.S. aircraft carrier and a guided-missile destroyer over the weekend. U.S. officials stated that the attack did not damage the U.S. ships, but Irans recent attempts to strike U.S. naval assets have raised concerns in the U.S. about its potential use of more advanced weaponry.Turkish Foreign Ministry: Türkiye strongly condemns the Houthi attacks on Saudi Arabia.On September 9th, Meta Platforms (META.O) launched Muse, a personal AI agent application that allows users to delegate digital tasks such as making appointments, filling out forms, and monitoring home cameras to an AI assistant. Alexander Wang, head of Meta AI, stated that Muse is powered by Metas Muse Spark series of underlying models and offers a free version as well as subscription services at $20 and $100 per month. He explained that Muse runs in an isolated environment within Metas computing infrastructure, does not read users actual passwords or payment information, and requests confirmation before performing sensitive operations. Users can choose whether to allow Meta to use their interactions with Muse to train AI models; if allowed, Meta will remove critical personally identifiable information before using it for model improvement. This product launch comes as Meta faces pressure regarding AI security, privacy, and ROI. Meta CEO Mark Zuckerberg previously stated that personal AI agents will be a key driver of the companys future product and revenue growth. Meta also stated that it is exploring business models related to AI agent-based shopping transactions.On September 9th, according to Tasnim News Agency, a small Iranian oil tanker was attacked by a US missile approximately 4 nautical miles from Khark Island. Local reports indicate the tanker was hit by a US projectile while anchored near Khark Island. The report states that there were no casualties, and the tankers crew is being evacuated. Authorities are currently investigating the extent of the damage and the specific circumstances of the incident; further information will be released as it becomes available.According to Israeli journalist i24, The Jerusalem Post has learned that the United States is currently attacking Iranian oil tankers.

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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