EUR/USD 1.15177
-0.619%
Gold 4598.24
-3.361%
Oil 102.956
9.300%
USD/JPY 159.686
0.554%
GBP/USD 1.32015
-0.790%
GBP/JPY 210.778
-0.204%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
French President Emmanuel Macron stated on April 2nd that attempting to reopen the Strait of Hormuz militarily is "unrealistic." Speaking to reporters during his visit to Seoul on Thursday, he said such an action would be time-consuming and uncertain, and would expose participating parties to the risk of being attacked by Irans Islamic Revolutionary Guard Corps. "This has never been an option we chose; we consider it unrealistic," Macron said. "We must be able to reopen this strait because it is strategically important for energy, fertilizers, and international trade, but this can only be achieved through negotiations with Iran." He indicated that the first step should be a ceasefire, followed by restarting negotiations, and that safeguarding operations could help ensure ships are not attacked. "The world cannot afford a situation where Iran can decide to open or close the strait at any time," Macron added.On April 2nd, Gong Zheng, Deputy Secretary of the Shanghai Municipal Committee and Mayor of Shanghai, conducted research on Shanghais leading industries in Pudong New Area. Gong Zheng stated that during the 15th Five-Year Plan period, Shanghai should accelerate the upgrading and competitiveness of its leading industries, and cultivate a large number of high-growth technology companies. He expressed hope that high-growth technology companies like Muxi would maintain their innovative momentum, continue to make breakthroughs, and fully utilize the resource advantages of Shanghai and Zhangjiang, strengthening industry-academia-research collaboration and upstream-downstream coordination to serve the digital transformation needs of various industries in Shanghai and help improve the quality and efficiency of all sectors. He also stressed that government departments should strengthen their service awareness, conduct thorough research and visits to key enterprises, promptly identify new situations and problems in industry development, address enterprise issues and demands with a "solution-oriented" approach, and promptly introduce industrial policies and measures to amplify the synergistic effects of policies, creating a first-class environment for the development of Shanghais leading industries.April 2 - US stock futures extended their losses, with Nasdaq 100 futures down more than 2%, Dow Jones futures down about 1.4%, and S&P 500 futures down about 1.6%.CME Group: In March, the average daily trading volume hit a new monthly high of 41.1 million contracts.CME Group: Average daily trading volume hit a new high of 36.2 million lots in the first quarter.

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