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On March 29th, it was learned from the Beijing Financial Regulatory Bureau that Beijing has taken the lead nationwide in launching the development and application of commercial insurance products for intelligent connected new energy vehicles. The new products largely follow the existing new energy commercial vehicle insurance system, adhering to the principle of "overall stability with partial optimization." They primarily provide risk protection for specific intelligent driving scenarios and software/hardware losses that are of concern to consumers and automakers, and can be uniformly adapted to all levels of intelligent connected new energy vehicles from L2 to L4. For example, existing car insurance products mainly define drivers based on the basic scenario of "human driving," which is not fully applicable to L3 and L4 level "human-machine co-driving" or "machine driving" scenarios. Furthermore, for L2 level assisted driving vehicles, some consumers upgrade their assisted driving systems at their own expense after purchasing a new car, but existing car insurance products do not cover this portion of the loss, requiring further optimization.According to Iranian state media, Iranian Parliament Speaker Qaribaf stated that the United States talks about negotiations in public but is secretly planning a ground offensive.On March 29, local time, a U.S. military KC-135R aerial refueling tanker encountered an emergency during a mission and was forced to return to Tel Aviv, Israel.The Israel Defense Forces have detected another ballistic missile launch by Iran. Alarms are expected to sound in southern Israel within the next few minutes.On March 29, South Korean Deputy Prime Minister and Minister of Finance and Economy Koo Yoon-cheol stated that if international oil prices rise to $120 to $130 per barrel, the government is likely to activate a Level 3 resource security crisis alert, and the vehicle license plate number restriction measures will be expanded to include the private sector.

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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