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On May 28th, Tencents Hunyuan announced the official launch of Hy-Memory. According to reports, this is a memory plugin specifically designed for long-term collaborative agents like Openclaw, truly becoming the agents "second brain."On May 28th, Federal Reserve Chairman Mohamed Mussaleem stated that policymakers cannot expect a potential productivity boom driven by artificial intelligence to alleviate persistently high inflation. Mussaleem noted, "I think it would be risky to rely on improved future productivity growth prospects to solve our current inflation problem." The conflict with Iran has reignited upward pressure on prices and prompted more policymakers to warn that further interest rate hikes may be necessary if inflation remains high. Mussaleem warned that, after adjusting for inflation, the Feds benchmark interest rate is currently below the so-called "neutral level"—a level that neither inhibits nor stimulates the economy. He also pointed out that the labor market remains stable, inflation is "significantly above" the Feds 2% target, and long-term inflation expectations are "gradually rising."The U.S. EIA natural gas storage figures for the week ending May 22 will be released in ten minutes.US Treasury bonds continued to rise; the 10-year yield fell 5 basis points to 4.43%.On May 28th, according to two US officials speaking to Axios, US and Iranian negotiators have reached an agreement on a 60-day memorandum of understanding aimed at extending the ceasefire and initiating negotiations on Irans nuclear program; however, Trump has not yet given final approval, requesting a few days to consider it. Signing the memorandum of understanding would be the most significant diplomatic breakthrough since the outbreak of the war, but further intensive negotiations are still needed to reach a final agreement addressing Trumps nuclear demands. US officials stated that the 60-day memorandum of understanding will stipulate that navigation in the Strait of Hormuz will be "unrestricted." One US official said this means no tolls will be charged, and no harassment will be carried out; Iran must clear all mines from the strait within 30 days. Another US official stated that the US maritime blockade will also be lifted, but this process will proceed in proportion to the progress of the resumption of commercial shipping. Officials indicated that the memorandum of understanding will include a commitment from Iran not to develop nuclear weapons. The memorandum will also stipulate that the primary negotiating topic during the 60-day window will be how to handle Irans highly enriched uranium and how to respond to Irans uranium enrichment activities. As part of the negotiations, the United States pledged to discuss lifting sanctions and unfreezing Iranian funds. The memorandum of understanding will also include discussions on establishing a mechanism to help Iran begin receiving material and humanitarian aid.

Forecast for Gold Price: XAU/USD fluctuates above $1,950 as risk-on sentiment loses steam ahead of US NFP

Daniel Rogers

Feb 02, 2023 15:52

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Gold price (XAU/USD) is exhibiting back-and-forth movement in the early London session following a stunning rally above the important resistance of $1,950.00. As the US Dollar Index (DXY) builds a buffer around 100.50, the precious metal has shifted to the sidelines. A lesser interest rate increase by the Federal Reserve (Fed) has driven the USD Index onto a downward trend, maintaining the bullish bias.

 

National Bank of Canada economists opine, "It would be a mistake for the Fed to continue hiking its key rate substantially above the current level and holding it there for an extended length of time if inflation continues to disappoint." Therefore, a FOMC policy shift is anticipated in the first quarter of 2023, which would pave the way for a more protracted drop.

 

Meanwhile, S&P500 futures are confidently maintaining their morning gains, indicating that the risk appetite theme is highly robust. However, 10-year US Treasury yields have risen beyond 3.42 percent.

 

After the Fed's policy-induced volatility, investors are moving their attention to Friday's release of United States Nonfarm Payrolls (NFP) (January) data. According to the consensus, the US economy added 185K jobs in January, compared to 223K in December. The unemployment rate is anticipated to rise to 3.6%. Also, the Average Hourly Earnings are anticipated to increase to 4.9% from 4.6% in the previous report.