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On August 16th, it was reported that the Houthi rebels in Yemen have launched a series of large-scale missile and drone attacks on the important port of Mocha. On the 15th, the port administration announced that the attacks had caused severe damage to port infrastructure, and all port operations had ceased. Mocha is one of Yemens most important ports, strategically located only 65 kilometers from the Bab el-Mandeb Strait and 6 kilometers from international shipping lanes connecting the Indian Ocean, the Arabian Sea, the Red Sea, and the Suez Canal. According to port officials, between August 9th and 14th, Mocha was attacked by 40 ballistic missiles and 46 drones. In addition, ships carrying explosives also launched attacks on the port from the water.On August 16th, it was reported that the Fujian Provincial Government recently issued the "Fujian Province 15th Five-Year Plan for Emerging Industries and Future Industries Development," outlining the promotion of nine future industries. Among these initiatives is the promotion of AI+ application demonstrations, the in-depth implementation of the "Artificial Intelligence+" leading demonstration action, the acceleration of Fujians artificial intelligence industry development, and the deep integration of AI with various fields such as industry, healthcare, education, and human resources. Support will be provided for the application and innovation of AI technology across the entire process, from R&D and design to pilot testing, manufacturing, marketing, and operational management. The plan also includes improving AI infrastructure construction, accelerating the construction of a province-wide integrated computing network, promoting the construction of public intelligent computing centers in Fuzhou, Xiamen, and Zhangzhou, and rationally allocating edge computing nodes; strengthening and expanding artificial intelligence pilot-scale bases, and collaborating with national strategic scientific and technological forces to create the AI for Science platform; and implementing the "Data Element ×" action, building high-quality datasets that meet AI-Ready requirements in key areas such as government affairs, healthcare, and marine sectors, promoting the construction of provincial data annotation bases, and building a data resource development service system. To foster an AI development ecosystem, we will build high-quality provincial-level AI industrial parks and AI industrial clusters in Fuzhou, Xiamen, and Quanzhou, and cultivate "AI+" enterprises in a tiered manner; support the joint construction of innovation platforms to tackle key technologies such as intelligent chips and core algorithms; support AI-native entrepreneurship and promote AI-native organizational innovation; and encourage various regions to explore the construction of low-cost, open OPC1 innovation communities to provide services such as prototype development for vertical fields.August 16 - According to announcements from the Chiba Prefectural Government and police on the 16th, as of now, the torrential rains that began in Chiba Prefecture on the 13th have resulted in 9 deaths and flooded more than 1,000 houses.U.S. Central Command: The USS Abraham Lincoln, homeported in San Diego, set sail last November for its deployment mission and arrived in the Middle East in January. The strike group has successfully carried out thousands of combat sorties to support Operation Epic Fury, regional security missions, and the current U.S. naval blockade of Iran.U.S. Central Command: Admiral Brad Cooper stated that the USS Lincoln Carrier Strike Group is a powerful and accomplished American team, and they are rightfully proud of everything they have accomplished. History will record this deployment as one of the most intense and far-reaching deployments in modern history.

Forecast for Gold Price: XAU/USD edges lower on a stronger USD and Fed rate rise worries

Alina Haynes

Sep 05, 2022 16:23

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Gold dips lower on the first trading day of the week, erasing a portion of Friday's substantial gains. The XAU/USD is on the defensive during the early European session, but lacks follow-through selling and has thus far managed to maintain its position above the $1,700 round-figure level.

 

On Monday, the US dollar reaches a fresh 20-year high, which turns out to be a significant factor imposing downward pressure on dollar-denominated gold. Despite Friday's delivery of a mixed US employment data, a growing consensus that the Fed will adhere to its aggressive policy tightening course continues to support the dollar. In fact, the markets are putting in a larger likelihood of a 75-bps rate hike at the September 20-21 FOMC meeting.

 

Recent hawkish remarks by various Fed members reiterated the bets, signaling that interest rates are likely to continue climbing until inflation is much closer to the 2% target. In addition, it is anticipated that the Reserve Bank of Australia, the European Central Bank, and the Bank of England would continue to hike interest rates. This is regarded as an additional component that contributes to the diversion of gold flows away from non-yielding gold.

 

In addition, indications of equities market stability appear to diminish demand for traditional safe-haven gold. However, mounting concerns about a more severe economic crisis should temper any euphoria. This, coupled with relatively low trading volumes due to the Labor Day holiday in the United States, may discourage dealers from taking aggressive wagers on gold. This necessitates vigilance prior to positioning for additional losses.