• English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
On October 31st, Commerzbank economist Joerg Kraemer noted in a research report that European Central Bank President Christine Lagarde signaled at her press conference that key interest rates would not be lowered in the coming months. Kraemer stated that Lagarde reiterated that current interest rates are in a "comfortable range," further reinforcing the case for maintaining interest rate stability. While acknowledging that economic risks have decreased due to trade compromises and the Middle East ceasefire, Lagarde avoided describing overall economic risks as tilted upwards. Kraemer stated, "We continue to expect the ECB to maintain the deposit rate at 2% at least until the end of next year."Market news: Ford Motor Company (FN) will invest $370 million in India.October 31st - According to sources familiar with the matter, Nvidia (NVDA.O) plans to invest up to $1 billion in artificial intelligence company Poolside, a deal that would quadruple the AI startups valuation. Poolside is in talks to raise $2 billion at a valuation of $12 billion (excluding amounts already raised). Sources say Nvidias initial investment in this round is $500 million, and could increase to $1 billion if the startup reaches its fundraising goals. Poolside reportedly already has over $1 billion in investment commitments, with approximately $700 million coming from existing investors. Magnetar, an asset management firm known for its hedge fund investments, is also reportedly in talks to participate in this funding round.On October 31, amid criticism from NASA regarding delays in rocket development, Elon Musks SpaceX proposed a faster plan for a manned lunar landing. The company quietly unveiled the new plan in a lengthy update to its website on Thursday, just over a week after NASA Acting Administrator Sean Duffy announced that SpaceX would be opening its lunar landing contract to competitors. SpaceX stated, "We have submitted and are formally evaluating a simplified mission architecture and operational plan that we believe will accelerate the return to the moon while improving astronaut safety." Under a $4 billion contract with NASA, the company will modify its giant Starship rocket into a lander capable of transporting astronauts to and from the lunar surface. SpaceX has pledged to have Starship ready for NASAs Artemis 3 mission, which will mark the first American lunar landing in over half a century.Market news: Federal Reserve Governor Bowman proposed cutting about 30% of the staff in the bank supervision department.

Forecast for Silver Price: XAG/USD to fall to $25.00 as supply concerns subside and risk aversion increases

Daniel Rogers

Apr 20, 2023 13:46

 截屏2022-06-06 下午5.54.42.png

 

During the early hours of Thursday, the price of silver (XAG / USD) falls to $25.20, a new intraday low. In doing so, the precious metal records its first daily loss in three days, as concerns of a supply crisis subside and a risk-averse mood prevails.

 

Wednesday, Reuters cited the Silver Institute's annual prognosis report, which stated that global silver demand increased by 18% to a record high of 1.24 billion ounces last year, resulting in a massive supply deficit. According to the report, "The Silver market was undersupplied by 237.7 million ounces in 2022, the institute said in its most recent World Silver Survey, calling this 'possibly the largest deficit on record'."

 

On the other hand, higher inflation indicators from the United Kingdom, the Eurozone, and the United States, along with hawkish comments from the Bank of England (BoE), European Central Bank (ECB), and Federal Reserve (Fed), increase the likelihood of rate increases and dampen investor sentiment. John Williams, president of the Federal Reserve Bank of New York, is one of the Fed's most recent policy advocates. In May, he voiced support for an interest rate hike of 0.25 percentage points and said, "We will use monetary policy tools to restore price stability." Before him, the president of the Federal Reserve Bank of Chicago, Austan Goolsbee, highlighted the strength of the credit market as one of the most important catalysts to monitor prior to the next Fed monetary policy meeting.

 

With this, market participants increase their wagers on the central bank's 0.25 percentage point rate hike in May to at least 85 percent and reduce the likelihood of a rate cut in 2023.

 

It should be noted that the UK's allegations of China's hidden motive to clamp down on Western infrastructure and the US House China Committee's discussion on the Taiwan invasion scenario rekindle the West vs. China conflict narrative and impact on sentiment. On the same line are the concerns surrounding the probable drag on the US debt ceiling decision as a result of US President Joe Biden's reluctance to raise debt limits.

 

In addition, Reuters reported that US consumers are falling behind on their credit card and loan payments as the economy weakens, which also puts pressure on the XAG/USD exchange rate.

 

In this context, S&P 500 Futures have recorded their first daily loss in four days, falling 0.25 percent intraday to 4,168 as of press time. However, the US 10-year and 2-year Treasury bond yields hover around 3.60 percent and 4.25 percent, respectively, after reaching new monthly highs the day before. The US Dollar Index (DXY) fluctuates around 102.000 after rectifying its adverse bias from the previous day.

 

Considering the future, the recent emphasis on qualitative news highlights them as the most important risk indicator. Nonetheless, the US Weekly Initial Jobless Claims, Philadelphia Fed Manufacturing Survey, and Existing Home Sales should be monitored for fresh impulses.