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The EUs antitrust regulator has approved Paramounts (PSKY.O) $110 billion acquisition of Warner Bros. Discovery (WBD.O).Iranian Parliament Speaker Qalibaf: If our region cannot sell oil, then no one can sell oil.Iranian President: The Iranian people will not succumb to threats. We have always emphasized the importance of diplomacy and advocated resolving differences through political means.On July 23, Wang Yi stated that China highly appreciates the Papua New Guinea governments announcement of the closure of the "Taipei Economic Office in Papua New Guinea." This is another key measure by the Papua New Guinea government to implement the one-China principle, following the closure of the "Trade Representative Office of Papua New Guinea in Taiwan." It is a completely correct move, in line with the fundamental interests of Papua New Guinea and its people, and will further consolidate the political foundation of China-Papua New Guinea relations, inject strong momentum into the comprehensive strategic partnership between the two countries, and also provide a model for other countries to correctly handle issues related to Taiwan institutions.On July 23, Wang Yi stated that under the strategic guidance of the two heads of state, China and Brazil have made positive progress in jointly building a community with a shared future for a more just world and a more sustainable planet. The comprehensive strategic partnership between the two countries has always been at the forefront globally, and it is necessary for both sides to maintain strategic communication, strengthen strategic coordination, and deepen strategic cooperation. China will continue to support Brazil in safeguarding its sovereignty, security, and development interests, and believes that Brazil will, as always, respect and support China in safeguarding its core interests. China is willing to work with Brazil to implement the important consensus reached by the two heads of state, strengthen cooperation in areas such as aerospace, connectivity, and artificial intelligence, and provide greater support for their respective development. China welcomes Brazils accession to the World Artificial Intelligence Cooperation Organization to safeguard common interests and deepen mutually beneficial cooperation in the new round of technological revolution. Vieira stated that the leaders of Brazil and China maintain close communication, build high mutual trust, and jointly lead bilateral relations to a high level. Exchanges between Brazil and China at all levels are frequent, and bilateral trade reached a new high last year. Brazil looks forward to working with China to further deepen cooperation in areas such as finance and trade, and strengthen collaboration on multilateral platforms such as the United Nations and BRICS.

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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