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On April 4, the Yangtze River Delta Railway ushered in the peak of passenger flow during the Qingming Festival. It is expected to send 4.1 million passengers today, 365,000 more than the same period last year, an increase of about 9.8%, and is expected to set a new record for single-day passenger volume. This years Qingming Festival railway transportation will start from April 3 to 7. The Yangtze River Delta Railway is expected to send 17.6 million passengers in 5 days, with an average daily passenger flow of 3.52 million, a year-on-year increase of 6.8%.The yield on the two-year U.S. Treasury note fell to a six-month low of 3.6550% and was last at 3.6611%.On April 4, local time on April 3, U.S. Secretary of Health and Human Services Robert Kennedy Jr. said that about 20% of the layoffs in the Department of Government Efficiency were wrong and needed to be corrected. The U.S. Department of Health and Human Services laid off about 10,000 people on the 1st. Kennedy said that people who should not have been laid off were laid off, and the department is restoring their positions. Kennedy said that canceling the entire lead poisoning prevention and monitoring department of the Centers for Disease Control and Prevention was one of the mistakes. At present, it is unclear what other projects Kennedy may plan to restore.Bank of Japan Governor Kazuo Ueda: Will consider the impact of food costs on consumers.On April 4, local time on the 3rd, the automobile company Stellantis said that due to the impact of the US import automobile tariff policy, the company decided to lay off 900 employees in its five US factories and suspend production operations at two assembly plants in Canada and Mexico. Antonio Filosa, Chief Operating Officer of Stellantis Americas, said that the US factories that were laid off were powertrain and stamping parts factories, which produced spare parts for two assembly plants in Canada and Mexico. According to the plan, the assembly plant in Canada will stop production for two weeks, and the assembly plant in Toluca, Mexico will suspend production throughout April. Filosa said the company is "continuing to evaluate the medium- and long-term impact of tariffs on operations."

Gold Price Prediction: The XAU/USD pair recovers from $1,755 as Fed and US-China-inspired risk aversion subsides

Daniel Rogers

Aug 03, 2022 14:44

 截屏2022-08-02 下午5.45.57_1024x576.png

 

During Wednesday's Asian session, the gold price (XAU/USD) regains its intraday high above $1,765 while consolidating the largest daily decline in two weeks. In doing so, the yellow metal applauds the US dollar's retreat from its weekly high amid a lackluster Asian session. The recovery steps also take into account the more robust activity statistics from China.

 

The US Dollar Index (DXY) falls from the weekly high around 106.55 to 106.34 at press time as market risk aversion decreases in response to July's stronger China Caixin Services PMI. Consequently, the private services index for the dragon country increased to 55.5% from 48 predicted and 54.5 before.

 

Intraday, S&P 500 Futures increase 0.10 percent, while 10-year US Treasury rates decline 1.5 basis points (bps) to 2.72 percent at the latest.

 

Earlier in the day, the US-China spat over Taiwan attracted significant attention and prolonged the previous day's risk-averse sentiment, which impacted on gold prices. Recently, Taiwan's Ministry of Defense stated that China's drills surrounding Taiwan reflect the country's will to undermine regional peace and stability. It should be emphasized that China's warning to the United States not to play the Taiwan card and its pledge to punish Taipei independence advocates, as well as its restriction of natural sand shipments to the Asian economy, appeared to amplify the risk-averse sentiment and sink the US dollar. Concerns that squabbles between the world's top two economies may have further negative effects on the global economy exacerbated recession worries.

 

James Bullard, president of the Federal Reserve Bank of St. Louis, dismissed worries of a US recession while supporting a 50 basis point (bps) rate rise. According to Reuters, the president of the Federal Reserve Bank of San Francisco, Mary Daly, stated that she is awaiting incoming data to determine whether the Fed should slow the rate rises or maintain the present pace. Reuters reported that Chicago Fed President Charles Evans expressed support for a 50 basis point (bps) rate rise at the September meeting if inflation does not improve. In addition, Loretta Mester, president of the Cleveland Fed, stated that she does not believe the US is experiencing a recession and that the job market is in excellent condition. She acknowledged, though, that inflation has not dropped "at all."

 

US Factory Orders for June and ISM Services PMI for July will combine headlines on China and the Federal Reserve to influence short-term XAU/USD movements.


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