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On April 11th, a Bank of America research report pointed out that a 10% oil price shock in the 1970s would have had a 90 basis point inflationary impact on the United States, while today that impact is approximately 25 basis points. Furthermore, the report noted that the drag on US growth from oil price shocks has also decreased from over 70 basis points in the past to about 5 basis points today. This may be attributed to the reduced US dependence on oil and the shale oil boom since the 2010s, which has made the US a net energy exporter.On April 11th, at the High-Level Forum on the Development of Intelligent Electric Vehicles (2026), NIO Chairman Li Bin stated that batteries and chips currently account for over 50% of the cost of intelligent electric vehicles, with very high costs associated with production capacity, verification, and production organization. This situation is due to two main reasons: First, the lack of standardized battery cell specifications restricts cost, efficiency, and market responsiveness. He suggested promoting battery cell standardization. Second, there are too many types of chips. Chips should be standardized, and relevant departments should organize automakers to unify chip types as soon as possible, developing interchangeable standards for each type. This would not only benefit the adoption of domestically produced chips in vehicles but also help reduce costs across the industry.April 11th - A Bank of America research report released on April 10th points out that since the 1970s, the global economys dependence on oil has gradually decreased: today, the amount of oil needed to produce the same level of GDP is only one-third of what it was in the 1970s. The OPEC crisis and the subsequent oil shock were once considered a severe stagflation shock. But today, economies are much more resilient to energy shocks of similar magnitude.On April 11, news circulated that JD.com was testing a new project called "Open Start" in collaboration with DeepBlue Auto, which was suspected to be related to launching a ride-hailing service. In response, JD Auto stated that it is not involved in a ride-hailing business and that "the new project will launch on April 13."On April 11, at the 2026 Intelligent Electric Vehicle Development High-Level Forum, Li Qiang, Vice President of the Public Cloud Business Unit and General Manager of AI Automotive Industry at Alibaba Cloud Intelligence Group, revealed that more than 30 automakers and intelligent driving solution providers are currently conducting intelligent driving research and development on Alibaba Cloud. The actual use of Pingtouges self-developed "Zhenwu" PPU has exceeded 100,000 calories, setting a record for the largest scale of self-developed AI chips used on a public cloud platform in the automotive industry.

The XAU/USD Gold Price Outlook bears creep in, yet calls from new heights can't be ignored

Daniel Rogers

Jul 25, 2022 14:47

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Although statistics released on Friday revealed that US economic activity contracted for the first time in almost two years in July due to a slowdown in services outweighing expansion in manufacturing, gold is selling at a discount to the dollar at the start of the week. The XAU/USD exchange rate is $1,722.30 with a day's trading range of $1,719.98 to $1,727.66.

 

The US Composite PMI Output Index dropped sharply to 47.5 this month from a final reading of 52.3 in June, suggesting the US may be entering a recession. This drop occurred on Friday. However, safe-haven flows helped the greenback on Friday night as investors fled equities in response to disappointing corporate announcements and boosted the dollar.

 

However, according to the earlier analysis, Gold price might be on the approach of a huge correction, the Fed meeting will be important, and the gold price has reduced a major price imbalance on the weekly chart in advance of a crucial event in this week's Federal Open Market Committee meeting.

 

After the hefty 75bp rate rise in June, the Federal Reserve is widely predicted to implement another increase in July, bringing the target range for the Fed Funds rate to 2.25% - 2.50 %. By doing so, the Committee's policy position would be aligned with its anticipated longer-term neutral level. In addition, Top1 Markets analysts expect Chair Powell to maintain flexibility by keeping the door open to subsequent rate hikes of 75 basis points.

 

Our analysts say that even if the gold price were to rise, the average position held by prop traders would still be about twice as large as normal, implying that a great deal of pain would resonate across gold markets if prices were to fall down. As there has been no sign of a gold market breakdown yet, it is likely that the recent gain will fizzle out when confronted with a sea of bids.


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