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On August 17th, Takehiko Nakao, former Japanese Finance Minister and President of the Asian Development Bank, stated that the Bank of Japan should raise interest rates at every policy meeting, aiming to elevate the benchmark rate to above 2% to narrow the interest rate differential between Japan and the US and alleviate pressure on the yens depreciation. He noted that even with Japans policy rate already at 1%, its real interest rate remains negative, while other countries have positive real interest rates. He believes that with inflation around 2%, a policy rate of 2.25% or 2.5% in Japan would not be uncommon.On August 17th, according to Tianyancha App, Kunming Beiye Data Technology Co., Ltd. was recently established. The legal representative is Qiu Jinghao, with a registered capital of 700 million RMB. It is a limited liability company (wholly foreign-owned), currently in operation, and its registered address is located in the Digital Economy Industrial Park, Enclosed Area of the Mohan-Boten Cooperation Zone. The companys business scope includes software development, information system integration services, information technology consulting services, and retail of computer hardware, software, and auxiliary equipment. Shareholder information shows that Beijing Zitiao Network Technology Co., Ltd. holds 100% of the companys shares, with a subscribed capital of 700 million RMB.Japanese power company J-Power: It will build a data center in Kaminokuni, Hokkaido, and will begin selling its GPU data center computing power in the summer of 2027.August 17th - According to the National Forestry and Grassland Administration, since the launch of the Three-North Shelterbelt Projects critical phase, the National Forestry and Grassland Administration, together with local governments and departments, has adhered to a systematic approach and scientific methods, allocating a total of 88.9 billion yuan in central government investment and implementing 544 key projects. The average annual construction area completed has exceeded 80 million mu (approximately 5.3 million hectares), making this the period with the greatest progress and best results in the projects history. Ecological benefits are gradually emerging, with the forest and grassland coverage rate in the project area reaching 40.76%, and the treatment rate of manageable desertified land reaching 67.82%, representing increases of 1.13 and 12.78 percentage points respectively compared to 2020. The main mid-term goals of the sixth phase of the Three-North Shelterbelt Project have been fully achieved.The New Taiwan dollar rose to 31.874 against the US dollar, a new high since July 2.

Gold Falls Below $1,900; The dollar Soars As The Fed Prepares to Double Its Rate Hikes

Charlie Brooks

Apr 26, 2022 09:57

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On Monday's session on the New York Comex, an ounce of the yellow gold returned to the $1,800 level.


This came as the dollar strengthened on expectations that the Federal Reserve would hike rates by 50 basis points, or half a percentage point, at its May policy meeting next week — more than double the 25 basis points, or quarter point, approved in March, the first increase in the post-pandemic era in the United States.


On Monday, Comex front-month gold futures for June finished down $38.30, or 2%, at $1,896 an ounce. On April 18, June gold reached a six-week high of $2,003 on concerns that the US could enter recession as a result of strong Fed attempts to rein down inflation. Gold is frequently used as a hedge against economic and political uncertainty.


Over the last week, a series of Fed speakers assuaged market concerns that the economy would turn negative as a result of the central bank's efforts to contain price pressures developing at their highest rate in 40 years.


While fears of a hard landing have not completely vanished, optimism, particularly regarding the sterling job market, has won over some pessimists. This has resulted in the dollar surging – the primary beneficiary of a rate hike — at the expense of gold and other safe-haven assets.


The Dollar Index, which compares the US currency to six main rivals, touched a 25-month high of 101.745 on Monday.


US bond yields, which frequently move in lockstep with the dollar, have recently decoupled from the greenback. The yield on the US 10-year Treasury note fell for the third consecutive day, dropping about 4% on the day.


While risk aversion across the board drew investors to safe-haven assets, gold's near-term charts showed the possibility of a rebound to the $1,900 lows, at the very least, following the week's loss of more than $100. 


"Gold has begun to exhibit oversold conditions on a daily basis, which may result in a short-term relief rally, albeit not necessarily a reversal," Dixit explained. "The $1,925 to $1,935 level remains a hurdle, but a rebound is probable." If history is any guide, gold will almost certainly find buyers at lower prices."


On the other hand, he noted, a Comex settlement below $1,888 will exacerbate gold's troubles.

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