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1. Ukrainian military claims to have struck Russian oil depot in Samara. 2. Ukrainian sources say death toll from Russian attacks in Zaporizhia has risen to 20. 3. Sources: US envoy may visit Moscow within two weeks. 4. Trump: Ukraine should not attack oil refineries; suggests a change in the Ukrainian president. 5. Zelenskyy speaks with leaders of several European countries. 6. Kremlin: Putin expressed "understanding" of some of Trumps proposals regarding de-escalation of the conflict in Ukraine during the call.October 11th - The UK government has established a new task force to address extreme weather, including the risk of flooding this winter. Following a record-breaking summer of high temperatures, the task force will meet this week to assess the UKs preparedness for potentially wet, windy, and stormy weather in the coming months, which the Met Office has described as a "significantly increased" likelihood. Environment, Food and Rural Affairs Secretary Emma Hardy stated before the meeting: "We are facing extreme weather, with the risks of flooding and drought intertwined, but the government is taking decisive action." The Environment Agency warned that approximately 6.3 million homes and businesses in England remain at risk of flooding. Hardy said: "We will put communities and businesses at the heart of our work to ensure that the UK is prepared to handle any weather conditions that may arise in the future." The Met Office stated that current seasonal forecasts indicate an increased likelihood of above-average rainfall this autumn due to El Niño. The Met Office warned that this years El Niño could be the strongest in memory, expected to peak at the end of the year.The UN Special Envoy to Yemen strongly condemns the Houthi attacks on Saudi civilian infrastructure. The Houthi attacks represent a serious escalation and add complexity to the situation. The envoy reiterates the call for the Houthis to cease their attacks on Saudi civilian targets.On October 11, U.S. Central Command stated that on October 10, Central Command forces rendered a commercial cargo ship inoperable in the Gulf of Oman after its crew ignored repeated warnings and attempted to break through a maritime blockade against Iran. A U.S. fighter jet used a precision-guided weapon to strike the stern of the Panamanian-flagged "Ocean Molica," completely disabling the ships propulsion system, but causing no casualties among the crew. The large cargo ship had departed from an Iranian port and was attempting to traverse the regions waters. Central Command forces reinstated a blockade against all vessels entering and leaving Iranian ports on July 14. During the three-month period of strict enforcement, four merchant ships were rendered inoperable, and 135 vessels were ordered to turn back. In addition, during the same period, the U.S. military destroyed 10 oil tankers linked to the Revolutionary Guards multi-billion dollar "shadow network."US President Trump: The attack on Saudi Arabia is appalling. Saudi Arabia has the capability to defend its country. We have ties with the Houthis, and well see what happens, but what theyve done is terrible. I havent spoken to the Saudi Crown Prince yet, but I will. Whats happening is unacceptable.

Gold Price Prediction: XAU/USD nears $1,980 as USD Index extends losses in response to the Fed's dovish guidance

Daniel Rogers

Mar 23, 2023 14:48

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In the Asian session, the gold price (XAU / USD) is gaining strength to surpass the immediate resistance of $1,980.00. As the US Dollar Index (DXY) resumed its decline and fears of a US banking crisis revived, demand for the precious metal increased.

 

As the Federal Reserve (Fed) has come extremely close to the terminal rate, which would be restrictive enough to bring down U.S. inflation to 2%, the USD Index is seeking to retest its six-month low below 102.000. Fed Chair Jerome Powell stated in his commentary that "additional policy tightening may be necessary."

 

Investors should be aware of the fact that the US banking crisis has bolstered the status of gold as a safe-haven asset. However, US Treasury Secretary Janet Yellen's reassurance of the safety of all bank deposits quelled concerns of a banking crisis.

 

As of Wednesday, when US Yellen stated that the government "is not considering insuring all uninsured bank deposits," the situation appears to have changed. This has also increased demand for United States government bonds. Yields on 10-year U.S. Treasuries have decreased to near 3.45%.

 

In the meantime, S&P500 futures have rebounded strongly after a steep decline on Wednesday, indicating an improvement in risk appetite. Nonetheless, caution still prevails as US banks' strict credit conditions will have a long-term impact. According to the Fed's commentary, the US banking system is solid and resilient, but US banks will be more cautious in their lending to households and businesses.