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U.S. House committees will consider a comprehensive aviation security bill on Thursday.On March 26, the Russian Ministry of Defense reported on the 25th that in the past day, Russian forces conducted strikes on Ukrainian long-range drone assembly workshops and launch sites, energy facilities used by the Ukrainian Armed Forces, ammunition and fuel depots, and temporary deployment sites of the Ukrainian Armed Forces and foreign mercenaries in 149 areas. Russian air defense forces shot down 543 fixed-wing drones. In addition, Russian forces seized control of a settlement in the Donetsk region. On the same day, the General Staff of the Ukrainian Armed Forces reported that 191 battles occurred in the front-line areas in the past day, with Ukrainian forces repelling Russian offensives on multiple fronts. Ukrainian missile and artillery units launched strikes against a key Russian target, shooting down 2,459 Russian drones. The Ukrainian Security Service also reported that Ukrainian forces conducted a long-range strike on a Russian oil infrastructure located on the Baltic coast.On March 26, Iranian Foreign Minister Araqchi stated in an interview with state television on the 25th that the current war is neither Irans war nor the United States war, but rather Israels pushing of the United States into conflict. Araqchi claimed that Israel is the main instigator of the war. He asserted that the United States primary mission is to ensure Israels security, and its military deployments in the Middle East are aimed at protecting Israel, even at the cost of everything. Israels goal, however, is to realize its "Greater Israel" plan, coveting the territory of several countries in the region. Araqchi said that this war has revealed many facts: US military bases in the region have not only failed to guarantee the security of host countries but have also become destabilizing factors; if these countries are attacked, it is precisely because of the existence of these bases.Reserve Bank of Australia Assistant Governor Kent: The committee will formulate monetary policy to achieve low and stable inflation and full employment.Reserve Bank of Australia Assistant Governor Kent: The longer the conflict lasts, the greater the impact on the economy.

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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