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The main Shanghai silver futures contract fell by 2.00% during the day, currently trading at 16,545.00 yuan/kg.On August 25th, it was learned from the National Bureau of Data Science and Technology that a new batch of 50 demonstration scenarios for public data "getting running" has been released, promoting the release of value from public data in various application scenarios. Chen Ronghui, Deputy Director of the National Bureau of Data Science and Technology, stated that key areas such as transportation, social management, healthcare, and emergency management account for a relatively high proportion, reaching 32%. Furthermore, judging from this batch of applications, the eastern and central regions are focusing on cutting-edge fields such as the development of the private economy, low-altitude economy, and marine economy, conducting pilot projects for the circulation and utilization of public data; while the western region is leveraging its resource advantages in characteristic agriculture, border trade, and mineral exploration to explore differentiated paths for the development and utilization of public data resources.Japanese Finance Minister Satsuki Katayama: We strive to achieve the dual goals of economic growth and sustainable finance.Japanese Finance Minister Satsuki Katayama: We still hope that the Strait of Hormuz will be opened as soon as possible, and will respond appropriately based on the impact of the US-Iran negotiations on the international community.On August 25th, US President Trump, who had previously claimed the US didnt need Canada, stated on Monday that Canada does indeed have the aluminum he wants. Trump said, "This country desperately needs aluminum. Selfishly speaking, we Americans need aluminum. We dont have aluminum. Most of our aluminum comes from Canada, and we desperately need it." Later Monday evening, Trump also proposed on social media a plan to build a "desperately needed" aluminum plant in Enola, Oklahoma. He wrote, "The United States cannot get aluminum, and if it is not approved, this aluminum plant will be moved elsewhere." Trumps remarks come as the US-Canada trade dispute escalates, with Trumps 50% tariff on metals becoming a focal point of contention. More than half of the aluminum consumed annually in the US comes from Canada, and the US and Canada were close to reaching an agreement last week to halve the aluminum tariffs. However, the Trump administration faces opposition from the US steel and aluminum industries, which are urging the government to avoid making too many concessions to the Canadian market.

Gold Price Forecast: The XAU/USD pair's decline is moderating as the price recovers from recent lows

Daniel Rogers

Aug 22, 2022 14:41

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As analysts at TD Securities explained, Chair Powell's remarks will likely be "a key avenue for the Fed to push back against the notable easing in financial conditions sparked by his last remarks, which has seen markets price in rate cuts immediately following the rate hiking cycle and is likely inconsistent with the Fed's inflation mandate." As market expectations for rate reduction diminish, speculative demand for precious metals should diminish more.

 

A chorus of Fed speakers has addressed us in the lead-up to the event. In an interview with CNN, Mary Daly, president of the Federal Reserve Bank of San Francisco, stated that it was far too early to declare victory on inflation and that a 50 basis point or 75 basis point increase would be reasonable.

 

Daly's bluster stirred up the dust and pushed the US dollar up 0.12% on the day to 106.78; since then, it has skyrocketed to 108.285 in Tokyo's opening hour. US bond yields continue to rise, following Europe's selloff, and the yield curve steepened. Yields on 2-year government bonds increased from 3.23% to 3.24% thru 3.29%, while yields on 10-year government bonds increased from 2.90% to 2.97%. The rising interest rates are particularly bad news for gold investors, as the yellow metal is extremely sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion.

 

Fed funds futures traders assign a likelihood of 55% that the Fed will raise rates by 50 basis points in September and a probability of 45% that rates will be raised by 75 basis points. According to calculations by Reuters and data from the US Commodity Futures Trading Commission published on Friday, speculators' net long positioning on the US dollar continues to expand, while net short positions on the euro increase. The value of the net long dollar position increased to $13.37 billion during the week ending August 16, according to statistics from the CFTC. Since four weeks ago, net long dollar positions have climbed for the first time.

 

Core PCE will be significant in data preceding the Jackson Hole Symposium. According to analysts at TD Securities, prices likely slowed significantly in July and at an even slower rate than the core CPI (0.1% vs. 0.3%).

 

"Shelter weights continue to be a major contributor to this disparity. The YoY rate likely decreased to 4.6% from 4.8% in June, indicating that the series has reached its apex. Separately, personal expenditure likely fell to a still robust 0.6% MoM pace after seeing an even greater 1.0% MoM increase in June.


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