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The Philadelphia Semiconductor Index fell 2%. Micron Technology (MU.O) fell 4.6%, Arm (ARM.O) fell 4%, and Nvidia (NVDA.O) fell 3.1%.European stocks rose broadly on November 11, as signs of progress in ending the record-breaking U.S. government shutdown propelled several regional indices to record highs. The pan-European Stoxx 600 index rose 1.1% to 578.85 points in afternoon trading, poised to close at a new record high. The narrower Eurozone blue-chip index, the Euro Stoxx 50, rose 1% to 5719.50 points, also on track for a new closing record. Meanwhile, the UKs FTSE 100 and Spains Ibex 35 indices rose 0.9% and 1.1% respectively, and are on track to surpass their record closing highs reached on Monday.The UK government has pledged £850 million for the Global Disease Initiative between 2026 and 2028, a 15% reduction from the previous funding round.On November 11, the Russian Federal Security Service (FSB) announced that it had thwarted a Ukrainian plot to hijack a Russian warplane. In response, Russia reportedly launched military strikes against Ukrainian intelligence agencies. The announcement stated that the Ukrainian Main Intelligence Directorate (GRU) and British intelligence planned to hijack a Russian MiG-31 fighter jet equipped with a Kinzhal hypersonic missile. The Ukrainian side attempted to recruit the Russian pilot, promising $3 million to fly the aircraft to a NATO airbase in Constanta, Romania, where it was feared it would be shot down by anti-aircraft weapons. In response, the Russian Aerospace Forces reportedly attacked the GRUs electronic reconnaissance center and the Old Konstantinov airport with Kinzhal missiles.November 11th - According to the German central bank, Germany must begin adjusting its borrowing limits from 2029 to ensure sound public finances in the long term. The German central bank has proposed a three-phase debt reduction plan and reiterated its call for better concentrating hundreds of billions of euros in spending on defense and infrastructure. The report, released on Tuesday, stated that the goal is to reliably safeguard sound public finances and public investment, comply with EU rules, and achieve relatively stable fiscal policy. The proposal envisions current credit limits remaining unchanged until 2029. The second phase will continue until 2035, with the structural deficit ratio gradually decreasing from approximately 4% in 2029 to 1% – this will also be achieved through increasingly funding defense spending without new loans. The final phase will begin in 2036, closely linked to the German central banks reform proposal in March, where additional borrowing capacity for the federal and state governments will depend on debt levels to firmly anchor it to the EU benchmark of 60%.

Institutions lowered their expectations for gold and silver prices, and do not believe that the 2013 plummeting market will recur

Oct 26, 2021 10:58

Gold is still trading below US$1,800. BMO Capital Markets believes that there is not much good news in the gold market in the fourth quarter of this year.



The agency once again lowered its expectations for gold and silver prices. In a report released last Thursday, analysts said that the Fed’s new hawkish tendencies will suppress precious metals for the rest of this year and next year .

Analysts pointed out in the report: “As inflation spreads in the value chain, many central banks have either begun to cancel loose monetary policy, or at least begin this journey, which also includes the Federal Reserve. Although negative real yields should prevent Macro assets are rapidly shifting from commodities to precious metals, but it is reasonable to be cautious about precious metals until the scale of bond purchases is reduced."

According to the bank’s latest forecast, analysts expect the average price of gold this year to be around US$1,781 per ounce, which is 1% lower than their previous forecast of US$1,803. At the same time, the bank predicts that the average price of gold in 2022 is approximately US$1,656 per ounce, which is also 1% lower than the previous forecast of US$1,669.

The bank also predicts that this year's silver price will average around US$25.10 per ounce, which is 3% lower than the previous estimate of US$25.9. By 2022, the average price of silver is expected to reach around US$24.90 per ounce, which is 2% lower than the previous forecast.

Although the Bank of Montreal has a slightly more pessimistic view of gold and silver, they pointed out that these two precious metals are "declining, but they are not out."

Analysts said that they do not expect the gold market to reproduce the plunge in 2013. After the 2008 financial crisis, the Federal Reserve began to implement monetary policy normalization, which led to a sharp drop in the price of gold.

Compared with the infamous “taper tantrum” in 2013, the price of gold has been performing well so far. In 2013, the price of gold plummeted by nearly 30% in six months. Although there was a large outflow of funds from ETFs in the first quarter, especially in North America, and the Fed is expected to reduce the scale of bond purchases by the end of the year, the Bank of Montreal capital market believes that there is no sufficient reason to withdraw from gold.

As for silver, the Canadian bank still believes that this precious metal has long-term potential. Analysts said: "We expect investors to have positive sentiments regarding the long-term industrial uses of silver, especially those related to the energy transition, to support silver prices in the short term."



Spot gold daily chart

At 8:34 on October 5th, GMT+8, spot gold was quoted at US$1766.59 per ounce.

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