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On April 11, Iranian First Vice President Aref posted on social media that if Iran negotiates with the "America First" US representatives in Islamabad, Pakistan, it is likely to reach an agreement beneficial to both sides and the world. However, if facing the "Israel First" US representatives, no agreement will be reached, and "we will inevitably continue to defend ourselves more resolutely than ever before, and the world will pay a greater price."Market news: Local authorities said that drone debris crashed at night in an area of an oil depot in Russias Krasnodar Krai, causing a fire that has been extinguished.April 11th - According to foreign media reports, British Prime Minister Keir Starmer has decided to increase UK defense spending at a faster pace than currently planned in an effort to counter potential leadership challenges. The UKs defense spending has fallen behind allies such as Germany, and the government had previously set a target of increasing core defense spending to 3.5% of economic output by 2035. The decision to increase defense spending is essentially finalized, but specific details are still pending. The UK Treasury insists that any significant increase in defense spending must be achieved through tax increases or spending cuts.On April 11, the Japanese government approved an additional subsidy of 631.5 billion yen (approximately US$4 billion) to accelerate Rapiduss entry into the highly competitive field of artificial intelligence chip manufacturing. This funding aims to support Rapiduss business operations for IT company Fujitsu. The Ministry of Economy, Trade and Industry stated on Saturday that the additional funding brings the total amount of government funding and investment in the startup to 2.6 trillion yen (approximately US$16.3 billion) in the current fiscal year (ending March 2027). The ministry said an external committee has inspected Rapiduss wafer fab in northern Hokkaido and approved its technological progress. The newly established chipmaker began developing wafers using 2-nanometer technology last year, aiming to mass-produce cutting-edge semiconductors by 2027 and help Japan reduce its reliance on industry leader TSMC.April 11th - A Bank of America research report indicates that the Eurozone is far more sensitive to oil prices than the United States. The study found that a 10% shock to oil prices would have an inflationary impact of approximately 40 basis points and a corresponding growth impact of over 10 basis points. Both of these effects are roughly twice that in the United States. We believe this result is due to the higher proportion of energy in Europes consumption basket and the regions status as a net importer of oil.

Gold And Copper Fall As China's Uncertainty Strengthens The Dollar

Skylar Williams

Nov 07, 2022 14:13

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China's reaffirmation of its zero-COVID policy heightened worries of a slowing economy and boosted the yuan, sending gold and copper prices to fall on Monday, erasing significant gains from the previous session.


In the early Asian trading session, spot gold fell 0.4% to $1,674.12 per ounce, while gold futures fell 0.5% to $1,677.30 per ounce. Following the announcement of stronger-than-expected U.S. nonfarm payrolls data for October, gold prices increased significantly on Friday, while the dollar fell.


On Monday, however, the dollar reversed its previous declines, with the dollar index increasing 0.2%. Chinese health officials said over the weekend that the government remained "unwaveringly" committed to its stringent zero-COVID policy, damping expectations of a U-turn that had prompted a big stock market increase the previous week.


The decision augurs future supply chain and economic problems emerging from the country, which boosted the dollar. Since growing interest rates have raised the potential cost of holding gold, the dollar has significantly overtaken gold as a safe haven.


The Federal Reserve has declared that it would continue to increase interest rates to battle inflation, which is expected to exert downward pressure on gold over the next several months. The positive employment report released last week gives the central bank greater room to raise interest rates.


This week's focus is on the U.S. inflation numbers for October, which are anticipated to show that price pressures remained around their highest levels in forty years. The Fed is likely to take further aggressive measures in response to such a reading.


China, the world's largest importer of the industrial metal, is anticipated to lower its demand for copper on Monday, leading copper prices to drop significantly. Copper futures decreased by 2% to $3,62.35 per ounce, erasing Friday's significant increase.


This year, China's zero-COVID policy halted the nation's economic development and hampered its appetite for imports of raw materials. It is predicted that commodity markets will continue to collapse as a consequence of the nation's reaffirmation of its commitment to the program.


In spite of this, copper prices are anticipated to increase substantially in the coming months as a result of a tighter supply, especially as Chile, the world's largest copper producer, reduces production.


In addition to sanctions imposed by the United States on Russian exporters, rising demand in the electric vehicle industry is expected to constrain supply.

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