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U.S. Energy Secretary Wright: Oil prices will fall if the war with Iran ends in five days.The SC crude oil futures contract plunged 10.00% intraday, currently trading at 721.80 yuan per barrel.On March 23, according to Axios, US President Trump told reporters that his special envoys had met with a senior Iranian leader and claimed that the two sides had reached an agreement on many issues. Iran denied having held such talks, claiming that Trumps move was merely aimed at stabilizing the energy market. An Israeli official told Axios that US envoys Witkov and Kushner had spoken with Iranian Parliament Speaker Ghalibaf. However, Trump did not reveal the identity of his Iranian counterpart, saying he did not want them to be killed, but he stated that the US and Iran were aligned on many key issues. Notably, Trump said, "I think the person were facing is the most respected person right now, but not the Supreme Leader, and we havent received a message from him yet." Trump indicated that the two sides would continue their talks by phone on Monday, followed by a possible face-to-face meeting. Israeli officials revealed that the mediators are attempting to convene a meeting in Islamabad—with Ghalibaf and other officials representing Tehran, and Witkov, Kushner, and possibly Vice President Vance representing the US—which could take place later this week. The official also stated that Israel was aware of the indirect communication between the US and Tehran, but was surprised by Trumps remarks on Monday. "We didnt know things were progressing so quickly."The Eurozones preliminary consumer confidence index for March was -16.3, compared to a forecast of -14.4 and a previous reading of -12.2.U.S. Energy Secretary Wright: There are several other measures that can be used to lower gasoline prices.

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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