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On April 25, Ibrahim Aziz, chairman of the National Security and Foreign Policy Committee of the Iranian Islamic Parliament, posted on social media early that morning that Iranian Foreign Minister Araqchis visit to Pakistan was solely for discussing bilateral relations and he was not authorized to handle any matters related to the nuclear negotiations. Aziz stated that the nuclear issue remains one of Irans red lines.Iranian Foreign Ministry spokesman: There are no plans for a meeting between Iran and the United States at the moment, and Irans observations will be relayed to Pakistan.According to the Associated Press, U.S. Treasury Secretary Bessenter ruled out the possibility of extending the oil waivers for Iran and Russia.Market news: A U.S. judge dismissed fraud allegations brought by Elon Musk against OpenAI and its founder Altman, and plans to continue the trial on other allegations against Musk.April 25 – According to a report by the Islamic Republic of Iran Broadcasting (IRNA) on April 24, Iranian Foreign Minister Araqchi, who has arrived in Islamabad, has no scheduled meetings with US representatives. However, he will use Pakistan as an intermediary to convey messages to the US, including Irans concerns about ending the current conflict. A Pakistani source previously told Xinhua News Agency that Araqchi would discuss the preconditions for Iran-US negotiations with Pakistani officials; if progress is made, Iran is expected to hold further direct negotiations with US representatives.

Gold Price Prediction: XAU/USD recovers to $1,700; negative potential intact

Daniel Rogers

Sep 07, 2022 16:26

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Gold extends Tuesday's retreat from a weekly high and continues to lose ground through the first half of Wednesday's trading session. The XAU/USD falls further below $1,700 for the third consecutive trading day, but stops just above the monthly low reached last Thursday.

 

The persistent purchasing of U.S. dollars remains ongoing and is a crucial element imposing downward pressure on dollar-denominated gold. In fact, the USD Index, which measures the performance of the greenback against a basket of currencies, reaches a new 20-year high in anticipation of a more aggressive Fed policy tightening.

 

In fact, current market pricing shows a probability of greater than 70% that the Fed will increase interest rates by 75 basis points at its upcoming meeting on September 20-21. The bets were confirmed by Tuesday's positive US ISM Services PMI, which caused a sell-off in the US government debt market and pushed the 30-year bond yield to its highest level since 2014.

 

In addition, the yield on the benchmark 10-year US Treasury note rose to levels not observed since June 16. This, in turn, provides extra support for the greenback and also contributes to a shift away from non-yielding gold. However, the existing risk-averse sentiment helps prevent deeper losses for the safe-haven precious metal for the time being.

 

Fears of a recession have been fueled by the likelihood of rapid interest rate increases, as well as the economic headwinds resulting from new COVID-19 restrictions in China and the ongoing conflict in Ukraine. This continues to weigh on investor sentiment, as evidenced by the generally gloomier tone on equities markets, and supports conventional safe-haven investments.

 

The flight to safety aids gold's comeback to the $1,700 round-number mark, but further recovery remains elusive. In the absence of market-moving economic releases from the United States, Fed officials' remarks will play a significant role in determining the USD's price dynamics. This could create chances for short-term trading in the commodity.

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