EUR/USD 1.16433
0.105%
Gold 4525.08
0.900%
Oil 89.234
-1.855%
USD/JPY 159.710
0.028%
GBP/USD 1.34670
0.094%
GBP/JPY 215.084
0.121%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
June 2nd - Chipmaker MediaTek will expand its hiring to support its expansion into new artificial intelligence businesses. This move echoes statements from other tech companies, aiming to alleviate concerns about job losses in the AI era. MediaTek Senior Vice President Hu Junhong stated that the company is confident in its growth prospects. He pointed out that order visibility for MediaTeks new data center business is good in the coming years.Japanese Prime Ministers Office: Japanese Prime Minister Sanae Takaichi met with World Bank Group President Ajay Banga.STMicroelectronics (STM.N) CEO: The company must decide by the end of this year whether to further expand the Kroller fab. Further expansion of the Kroller fab is "highly likely" the company will take.June 2nd - Eurozone inflation surpassed 3% for the first time in two and a half years, further reinforcing expectations that the European Central Bank (ECB) will raise interest rates at its meeting next week. Eurostat reported on Tuesday that the CPI rose 3.2% year-on-year in May, up from 3% in the previous month and in line with the median forecast. Core inflation, excluding volatile items such as food and energy, rose sharply to 2.5%, exceeding expectations, while the closely watched services index jumped to 3.5%. Markets expect the ECB to raise interest rates in June for the first time since September 2023. Officials appear to have concluded that they can no longer wait and must respond immediately to the impact of the Middle East conflict.On June 2nd, the State Council issued the "15th Five-Year Plan for Accelerating the Modernization of Agriculture and Rural Areas." The plan mentions promoting the research and application of high-end, intelligent agricultural machinery and equipment suitable for hilly and mountainous areas. It also calls for the categorized cultivation of leading enterprises in the agricultural machinery and equipment sector, manufacturing single-item champion enterprises, and specialized and innovative SMEs, supporting enterprises in strengthening production line technological transformation and accelerating digital transformation, and building strong advanced manufacturing clusters and SME characteristic industrial clusters in the agricultural machinery and equipment sector. The plan systematically promotes the research and development of new energy agricultural machinery and equipment technologies, industrial collaboration, and infrastructure construction. It also calls for the orderly development of the low-altitude economy in the agricultural and rural sectors. Furthermore, it emphasizes strengthening independent research and development of modern facility agriculture equipment and the categorized and orderly upgrading and renovation of old facilities. Finally, it implements a "preferential subsidy for superior machinery" and "entry and exit" system for agricultural machinery purchase and application subsidies, as well as the scrapping and replacement of old agricultural machinery.

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