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On September 1, Premier Li Qiang met with a delegation led by John McCain, Chairman of the Board of Directors of the US-China Business Council, at the Great Hall of the People in Beijing. Li Qiang pointed out that the essence of China-US economic and trade relations is mutual benefit and win-win cooperation, and strengthening cooperation is both an inherent need and the right choice for both sides. As long as there is mutual respect and understanding, and strengthened communication and consultation, solutions can always be found. China is willing to actively promote the resolution of the reasonable demands of American companies operating in China and safeguard a fair and competitive market environment in accordance with the law. China also hopes that the US will meet China halfway and take concrete actions to address Chinas concerns, jointly implementing the outcomes of bilateral economic and trade consultations. He hoped that the US-China Business Council would continue to exert its influence to guide various sectors in the US to view Chinas development rationally and objectively, and promote the stable, healthy, and sustainable development of China-US relations.September 1 – On the afternoon of September 1, Premier Li Qiang met with a delegation led by John McCain, Chairman of the Board of Directors of the US-China Business Council, at the Great Hall of the People in Beijing. Li Qiang stated that the US-China Business Council has long been committed to promoting China-US relations and economic and trade cooperation, playing a vital role. With the joint efforts of both sides, bilateral relations are currently maintaining overall stability. In May of this year, President Xi Jinping and President Trump met in Beijing and reached a series of important consensuses. China is willing to work with the US to follow the strategic guidance of the two heads of state, strengthen dialogue and communication, expand mutually beneficial cooperation, properly manage differences, promote the building of a constructive strategic and stable China-US relationship, and strive for more practical results.September 1 - On the afternoon of September 1, Premier Li Qiang met with a delegation led by John McCain, Chairman of the Board of Directors of the US-China Business Council, at the Great Hall of the People in Beijing.September 1st - Despite accusations that Chancellor of the Exchequer John Healy has reneged on his previous commitment to achieving this target, the British military still expects him to pledge 3% of GDP for defense spending by 2030. Sources revealed that the Treasury informed senior military officials weeks ago that it could not announce this target in the October 28th budget, and the decision would be postponed until the multi-year public spending review in 2027. However, the sources indicated that after discussions with Healy, they expect the 3% GDP target for defense spending by 2030 to be announced at that time. Defense spending currently accounts for 2.6% of GDP; increasing it to 3% would require an additional £15 billion annually from the Office for Budget Responsibility, equivalent to raising the basic income tax rate by approximately 2 percentage points. It remains unclear how this additional expenditure will be financed.Market news: The British military expects Chancellor of the Exchequer Healy to increase defense spending to 3% of GDP by 2030.

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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