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August 22nd - The APEC Customs and Business Dialogue concluded yesterday (August 21st). Reporters learned at the dialogue that Chinese customs has signed six bilateral agreements with relevant departments of several APEC economies, including Chile and South Korea, covering imported agricultural and food products such as instant noodles containing meat and fresh fruits.On August 22nd, experts stated that the price increase of domestically produced large-scale models is a correction to the long-standing inversion of inference computing power costs. In the short term, this is more like a recalibration of price and value. However, if manufacturers only raise prices without keeping up with stability and other aspects, users will vote with their feet, as the cost of replacing models is decreasing. Going forward, it is necessary to continuously monitor the dual verification of the price increase strategy: firstly, whether manufacturers have matched the price increase with new model capabilities, rather than simply raising the price of old models; secondly, it is necessary to pay attention to where the increased revenue is used, whether it has been used for computing power expansion and service capability building.On August 22, the Russian Ministry of Defense reported that on August 21, Russian forces continued their strikes against ports and vessels serving the interests of the Ukrainian Armed Forces. The report stated that Russian drones struck a military warehouse in the port of Leny; a Ukrainian naval patrol boat in the port of Chernomorsk; and port infrastructure used for storing military supplies in a southern port. Additionally, Russian forces seized control of a settlement in the Donetsk region. Ukrainian President Zelenskyy posted on social media on August 21 that Ukrainian forces launched long-range strikes in the early hours of the day, hitting two important Russian targets: an oil refinery and a military airfield. Ukraine also stated that it had achieved results on the Black Sea front, but did not disclose specific targets or the extent of damage.According to the New York Times, Anthropic may be planning to raise $100 billion in its initial public offering.Conflict Situation: 1. Iran: Will respond to enemy threats with devastating action. 2. Irans "economic war" plan against the US exposed, Yanbu and Fujairah targeted. 3. Iranian official: Plans to attack oil export facilities, intended to strike at Trump before the US midterm elections. Peace Negotiations: 1. UN calls on all parties in the Gulf region to return to negotiations. 2. Trump: Turning to "economic war" against Iran does not mean the US military options are limited; if I lose the midterm elections, I will be impeached. 3. According to Omans national news agency: Oman and Iranian foreign ministers discussed conditions for resuming negotiations to support the resumption of navigation in the Strait of Hormuz. 4. Iranian lawmaker Qassem: A proposal demanding Iran withdraw from the Treaty on the Non-Proliferation of Nuclear Weapons has been submitted to parliament and is currently being advanced. Other Matters: 1. Iranian president calls for an end to the war against the US while in a strong position. 2. According to Iranian state television: Iran and Iraq sign a comprehensive security agreement. 3. Israeli sources: The possibility of a short-term military confrontation with Iran has decreased. 4. Iranian Parliament Speaker Ghalibaf: The path of struggle between Iran and Iraq against the US and Israel will continue. 5. Iraqi Parliament Speaker: Iran plans to facilitate Iraqi oil transit through Hormuz. 6. According to Al Jazeera: The Iranian parliament will review the finalized preferential trade agreement between Iran and Oman. 7. Israeli Prime Minister Netanyahu: Israel will continue to take strong action against Türkiyes attempts to destabilize the region.

Forecast for Gold: XAUUSD retreats from $1800 on rising US yields

Daniel Rogers

Aug 12, 2022 11:59

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While it had been trending upwards, gold's daily performance took a sour turn and it is now trading below $1800. During the American session, the XAUUSD reached a high of $1799 before turning down and heading below $1785.

 

Despite predictions of a 0.2% monthly increase, data released on Thursday indicated that the US Producer Price Index decreased by 0.5% in July, bringing the annual rate down to 9.8%. The Consumer Price Index did not move in July, contrary to predictions of a 0.2% increase, according to data released on Wednesday. The US currency fell because of the inflation rate going down.

 

Investors continue to count on a rate hike of 50 basis points or more from the Federal Reserve at their September meeting. U.S. rates have risen despite though a peak in US inflation is more likely, which is surprising. Both the US 10-year yield (now at 2.83%) and the 2-year yield (3.20%) are at their highest levels in nearly a week.

 

Increased US yields capped gold's gains. The inability of the XAU/USD pair to maintain a price over $1800 despite the recent US data has fueled skepticism that the rally will continue. Weekly support is found around $1774, and the immediate support is at $1785. Additional gains appear likely if the price of gold can consolidate over $1800.