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Japans May coincident economic index rose 0.4% month-on-month, down from 1.3% in the previous month.On July 7th, the Ministry of Ecology and Environment recently released the "Technical Guidelines for the Formulation of Water Pollutant Discharge Standards for Centralized Wastewater Treatment Facilities in Industrial Parks," providing clear technical guidance for wastewater discharge standards in industrial parks across the country. The new regulations clarify that local governments must adhere to the principles of categorized management, comprehensive prevention and control, scientific feasibility, and legal compliance when formulating discharge standards. Industrial parks are divided into two categories: single-industry and comprehensive. Comprehensive industrial parks can be further subdivided into three subcategories: industry-similar, leading, and differentiated. Local governments should select parks with large discharge volumes, a wide variety of toxic and hazardous water pollutants, high risks to the receiving water bodies aquatic ecosystems, and for which current discharge standards are inapplicable, based on their actual conditions and environmental management needs, to formulate their own discharge standards. For industry-differentiated parks, priority should be given to formulating "one park, one policy" control requirements.1. According to Longzhong Information, as of the week ending July 6, the total commercial inventory of pure benzene at Jiangsu ports fell to 59,800 tons, a decrease of 14,200 tons week-on-week, a drop of nearly 20%. This absolute amount is a sharp decrease of 114,200 tons compared to 174,000 tons in the same period last year, a year-on-year decrease of 65.63%. 2. Sources say Germany plans to establish an emergency natural gas reserve, with a scale of up to 1.5 billion euros, plus operating costs. 3. Monitoring by the National Grain and Oil Information Center shows that as of July 3, 2026, the commercial inventory of the three major domestic oils has increased significantly to 2.18 million tons, an increase of 70,000 tons week-on-week. The national major oil mills imported soybean inventory is 7.7 million tons, an increase of 280,000 tons week-on-week; domestic soybean oil commercial inventory is 1.08 million tons, an increase of 10,000 tons week-on-week; and palm oil is 760,000 tons, an increase of 50,000 tons week-on-week. 4. According to the Ejin Horo Banner Mine Safety Supervision Bureau, the Ejin Horo Banner Haoda Coal Co., Ltd. has been ordered to suspend production for rectification due to safety hazards. 5. Market news: BHP Billiton has received approval to launch a $15 billion copper mine expansion project in Chile. 6. Mysteel satellite data shows that from June 29 to July 5, 2026, the total iron ore inventory at seven major ports in Australia and Brazil reached 14.394 million tons, an increase of 421,000 tons compared to the previous period. Port inventories continue to accumulate, and the current inventory level has risen to a high level for the year. 7. Shanghai Gold Exchange: Agreed to admit Hong Kong Precious Metals Central Clearing System Limited as an international member of the Shanghai Gold Exchange. 8. According to CCTV, the Guangxi Zhuang Autonomous Region Hydrological Center upgraded its flood warning to red at 7:00 AM on the 7th. Riverside areas in Guigang, Nanning, Wuzhou, Qinzhou, Beihai, Fangchenggang, Yulin, and Guilin should strengthen precautions and take timely evacuation measures. 9. According to the Shanghai Securities News, Pan Gongsheng, Governor of the Peoples Bank of China, stated that he supports Hong Kong in launching offshore RMB treasury bond futures and supports Hong Kong in building a comprehensive financial trading platform.JPMorgan Chase raised its price target for Eli Lilly (LLY.N) from $1,300 to $1,400.The yield on Japans 5-year government bonds fell 1.0 basis point to 1.930%.

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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