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On June 19th, a ceremony was held in Antananarivo, the capital of Madagascar, to mark the delivery of meteorological equipment donated by China. The donation, made through a UNDP-implemented livelihood project in Madagascar, included a batch of weather warning and information technology equipment. Madagascar, the largest island in Africa, is located in the western Indian Ocean. Its rainy season and tropical cyclone season run from December to March. In addition to heavy rainfall and tropical cyclones, the country also faces the long-term threat of natural disasters such as floods and droughts, severely impacting its economic and social development and the lives of its people.June 19 - According to TankerTrackers, a maritime news agency, Iran exported approximately 18 million barrels of crude oil, worth about $1.44 billion, in the past five days.On June 19, the Afghan Ministry of Defense claimed that its air force had conducted airstrikes overnight on multiple hideouts in neighboring Pakistans Khorasan province used by the extremist group ISIS. Pakistan denied the claims on the same day. The Afghan Ministry of Defense issued a statement on social media stating that all pre-selected high-value targets in the operation were hit; these targets were located in Pakistans Balochistan and Khyber Pakhtunkhwa provinces. The locations were "used to plan and coordinate attacks against Afghanistan." Pakistans Ministry of Information and Broadcasting issued a statement on June 19 denying the claims. The statement said that a drone from Afghanistan violated Pakistani airspace in the Khyber region, and was identified and immediately shot down by the Pakistani Air Forces early warning and defense system. The statement also claimed that ISIS camps and several other terrorist organizations are actually located within Afghan government-controlled areas and are funded and operated by personnel within the Afghan government.On June 19th, the Guangdong Provincial Peoples Government issued a notice titled "Implementation Plan for Promoting the Expansion and Quality Improvement of the Service Industry in Guangdong Province." The plan includes fostering and developing general aviation transportation, actively developing low-altitude logistics, strengthening provincial and municipal coordination in the management of low-altitude flight activities, and accelerating the formation of a low-altitude cross-border logistics network connecting Hong Kong and Macau. It also supports railway transportation enterprises in deepening cooperation with social logistics companies, strengthening policy support for high-speed rail freight, launching general cargo freight trains, and expanding the general cargo transportation market. The plan actively explores cross-city collaborative transportation and autonomous driving transportation scenarios. Finally, it aims to improve the pipeline transportation network and promote substantial connectivity between the Pearl River Deltas inner ring pipeline network and the provincial pipeline network.On June 19th, the Guangdong Provincial Peoples Government issued the "Implementation Plan for Promoting the Expansion and Quality Improvement of the Service Industry in Guangdong Province." The plan proposes to control new supply, reduce inventory, and optimize supply through city-specific policies. This includes improving the adaptability of housing supply, optimizing the accuracy of housing purchase subsidies, continuously conducting sales promotions for commercial housing, and encouraging promotion outside the province. The plan also calls for the orderly advancement of "good housing" construction and the improvement of public service facilities for real estate development projects. It actively promotes the "sell old, buy new" and "sell small, buy large" approach to commercial housing, implements cross-bank mortgage transfers for second-hand homes, supports qualified enterprises in acquiring second-hand homes, and streamlines the exchange chain between new and second-hand homes. The plan also promotes the conversion of commercial and office buildings for accommodation, shopping malls, medical facilities, and elderly care, thereby reducing the inventory of commercial and office buildings. Furthermore, it intensifies efforts to promote urban renewal, continuously advancing the renovation of old urban residential areas and the construction of complete communities (future communities), supporting the original demolition and reconstruction of old housing and independent renovation, and promoting the housing voucher resettlement model in the new model of urban village renovation.

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.