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UN Secretary-General António Guterres: The United Nations faces enormous difficulties in curbing the surge in global conflicts.On May 20, President Xi Jinping and Russian President Vladimir Putin jointly met with reporters at the Great Hall of the People in Beijing.Interest rate futures indicate that the Bank of England will raise interest rates by about 52 basis points by December, compared to about 60 basis points on Tuesday.On May 20, Chen Binhua, spokesperson for the Taiwan Affairs Office of the State Council, commented on the remarks made by Taiwan leader Lai Ching-te during his "May 20" speech and Q&A session regarding cross-strait relations. He stated that Lais speech was filled with lies and deception, hostility and confrontation, stubbornly adhering to the erroneous "Taiwan independence" stance, promoting the fallacies of so-called "sovereign independence" and "non-subordination," exaggerating the "mainland threat," escalating cross-strait confrontation, and deliberately seeking "independence through force" and "independence through foreign support," thus undermining peace and stability in the Taiwan Strait. This once again confirms that he is an out-and-out "disruptor of cross-strait peace" and a "creator of the Taiwan Strait crisis." While continuing to advocate "Taiwan independence" and manipulate "anti-China" sentiments, he hypocritically claims to promote cross-strait dialogue and exchanges, attempting to deceive the Taiwanese people and mislead international public opinion. These habitual tricks have been seen through by an increasing number of Taiwanese people, and his deceptive behavior and provocative actions will inevitably be met with resolute opposition from compatriots on both sides of the strait and the international community, and are doomed to failure.The Nikkei 225 index closed down 746.18 points, or 1.23%, at 59,804.41 on Wednesday, May 20.

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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