• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
Hong Kong-listed auto stocks fluctuated upward, with Leapmotor (09863.HK) rising more than 9%, Geely Auto (00175.HK) rising nearly 5%, NIO (09866.HK) and Li Auto (02015.HK) both rising more than 1%.Asian stocks swung on Wednesday, with safe-haven gold hovering near record highs as the world nervously awaited details of Trumps tariff plan and investors worried about the risk of an intensifying global trade war. "We find that our trading environment is volatile, with price swings in the market driven by market participants adjusting their risk exposure on the margins and unwilling to make commitments," said Chris Weston, head of research at Pepperstone. "Trump called April 2 Liberation Day, but investors are unlikely to be truly free from the uncertainty of tariffs," said Vasu Menon, managing director of investment strategy at OCBC Bank in Singapore. "If other countries retaliate, Trump could raise the stakes -- a possibility that could continue to make investors nervous."On April 2, Jiang Ping, Director of the Inclusive Finance Department of the Financial Supervision Administration, said at a press conference held by the State Council Information Office on April 2 that the Financial Supervision Administration will promote the deep integration of the construction of the social credit system and financial supervision, actively participate in the construction of the social credit system, and guide financial institutions to make good use of the results of the construction of the social credit system. The Financial Supervision Administration will focus on solving the problem of information asymmetry between banks and enterprises, and guide financial institutions to query and use corporate credit information on the premise of compliance with laws and regulations and full authorization, and organically combine it with financial information, and widely use it in product development, credit approval, and post-loan management, so as to improve the quality and efficiency of financial services for the real economy.On April 2, JD.com issued a salary increase notice that Dada employees salaries will be upgraded to 19 salaries this year and to 20 salaries next year; in addition, some outstanding Dada employees will be awarded JD.com Group stocks.On April 2, CICC published a research report stating that due to the decline in coal prices, Yankuang Energy (01171.HK)s net profit fell 27% year-on-year last year, and its performance was roughly in line with the banks expectations. The bank expects the groups H-share earnings per share to be 9.2 billion and 11 billion yuan this year and next year, respectively. Although the decline in coal prices may drag down Yankuang Energys profits in the short term, in the long run, the group has huge growth potential and is optimistic about its profit growth. The bank maintains the groups outperform rating. Due to the slowdown in supply and demand and the decline in short-term profits, the H-share target price was lowered by 38% to HK$10, equivalent to a forecast price-to-earnings ratio of 10.3 times and 8.4 times this year and next year, respectively.

Fundamental Gold Prediction: The US Dollar Weighs on Gold. Will U.S. Retail Sales Change Direction?

Daniel Rogers

May 16, 2022 11:15

Gold prices declined further last week as traders considered the likelihood of an economic recession in light of the Federal Reserve's more hawkish stance. This was supported by a number of inflation reports from the United States. The consumer price index (CPI) for April came in at 8.3 percent year-over-year, exceeding analysts' projections of 8.1 percent year-over-year. The producer price index (PPI) for the same period shows that factory-gate prices have risen by 11.0 percent year-over-year.

 

This batch of inflation data contributed to the dollar's appreciation against the majority of its major rivals. A stronger Dollar often works against the price of bullion. Due mostly to Finland's announcement that it plans to strongly pursue NATO membership, the Euro depreciated. This drew a strong response from Russia, which vowed to respond, so reinforcing the risk-averse sentiment that has been permeating the Eurozone.

 

During the upcoming week, traders will closely monitor numerous high-profile data releases that may affect XAU prices. The US retail sales report for April may have the most impact on market mood. According to a Bloomberg survey, analysts expect April retail sales to increase by 0.7% month-over-month. A stronger-than-expected figure may alleviate some concerns about an impending economic recession. As the US Dollar has been operating as a safe haven for traders, this would likely serve to weaken the currency and may allow gold to climb by reducing risk aversion.

Gold versus US Dollar Chart Weekly

image.png