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The Hang Seng Tech Index in Hong Kong fell sharply in early trading, dropping more than 2%. NIO (09866.HK) fell nearly 5%, while Alibaba (09988.HK), XPeng Group (09868.HK), and Zhipu (02513.HK) all fell more than 3.5%. Baidu (09888.HK) and Trip.com Group-S (09961.HK) fell more than 3%.On Thursday, September 10, the Hong Kong Hang Seng Index opened down 289.78 points, or 1.15%, at 24,985.18; the Hong Kong Hang Seng Tech Index opened down 61.38 points, or 1.39%, at 4,359.41; the H-share Index opened down 99.56 points, or 1.19%, at 8,269.49; and the Red Chip Index opened down 36.28 points, or 0.85%, at 4,227.13.Hang Seng Index futures opened 1.04% lower at 24,915 points, a discount of 353 points.According to the Wall Street Journal: US President Trump took to the stage to present the Republican platform for the midterm elections.September 10th – This morning (September 10th), a roundtable meeting between the National Development and Reform Commission (NDRC) and senior executives of US multinational corporations operating in China was held in Beijing, themed "Embracing the 15th Five-Year Plan and Jointly Seeking New Development." Representatives from over 60 US companies operating in China, representing sectors such as technology computing power, industrial energy, and consumer medicine, including Amazon Web Services, NVIDIA, Dell, and Honeywell (China) Co., Ltd., attended the meeting. At the meeting, relevant departments of the NDRC introduced the policy considerations related to the 15th Five-Year Plan, the situation of my countrys foreign investment policies during the 15th Five-Year Plan period, the implementation results of the new round of large-scale equipment renewal and consumer goods trade-in policies, and the spirit of policies related to boosting consumption. Relevant officials introduced the development of Beijings economic and social development and promoted Beijings investment environment. Senior representatives of multinational corporations also delivered speeches and exchanged views.

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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