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On July 7 local time, Saudi Arabia launched airstrikes against Yemen, resulting in 4 deaths.January 7th - New developments have emerged in the domestic lithography machine industry. Recently, Shanghai Weiyao Industrial Co., Ltd. underwent a shareholder change, with Shanghai Microelectronics Equipment (Group) Co., Ltd., which previously held 100% of the shares, withdrawing. Shanghai Chip-on Microelectronics Technology Co., Ltd. became the new sole shareholder of Weiyao Industrial, with a subscribed capital of 229 million yuan. Industry insiders indicate that Chip-on Microelectronics was spun off from Shanghai Microelectronics, and its core team comes from Shanghai Microelectronics. This acquisition of Weiyao Industrial by Chip-on Microelectronics may signify its return to its role as a "listing platform for related assets under Shanghai Microelectronics."On January 7th, the Information Office of the Shandong Provincial Peoples Government held a routine policy briefing, inviting officials from the Shandong Provincial Department of Transportation and others to interpret the "Three-Year Action Plan for High-Quality Development of Shandongs Aviation Maintenance Industry." Feng Lishu, a second-level inspector of the Shandong Provincial Development and Reform Commission, stated that the plan emphasizes strengthening openness and improving efficiency to create a win-win open environment. It calls for deepening cross-provincial cooperation and exchanges with the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and the Yellow River Basin; actively integrating into the supply chain of commercial aircraft such as COMAC; attracting first-tier suppliers of domestically produced large aircraft such as Shandong Taikoo and Nanshan Aluminum; and facilitating COMACs on-site research visits to enterprises in the province to open channels for these enterprises to be included in the potential supplier system. The plan also includes conducting international strategic alignment and various forms of international and domestic cooperation, encouraging foreign and private capital to invest in and develop the aviation maintenance industry in Shandong, actively exploring international markets such as Japan, South Korea, Europe, and the United States, and enhancing global resource connectivity capabilities.Gold prices fell on Wednesday as investors took profits, while a stronger dollar weighed on sentiment across the precious metals sector ahead of key jobs data this week. Brian Lan, managing director of GoldSilver Central, said, "Theres always some profit-taking after the price has risen (too quickly) this week…the dollar is also putting pressure on prices." The dollar traded narrowly near its highest level in over two weeks ahead of a series of U.S. economic data releases, making dollar-denominated assets more expensive for holders of other currencies. Investors expect at least two rate cuts by the Federal Reserve this year and are watching Fridays non-farm payroll data for further clues. Wednesdays JOLTS job openings survey and ADP employment data could also set the tone for the market.January 7th - According to a new notice published on the State Departments website on January 6th by the Consular Affairs Division, the U.S. is expanding its list of countries requiring visa applicants to pay a deposit of up to $15,000 to 38 countries. The notice states that the deposit requirements for the newly added countries will take effect on January 21st. The 25 newly added countries to the visa deposit requirement list include Algeria, Angola, Antigua and Barbuda, among others. The 13 countries previously included on the list included Bhutan and Botswana, among others.

Gold Price Prediction: XAU / USD corrects to around $1,910 despite intensifying concerns of a global banking crisis

Alina Haynes

Mar 16, 2023 14:00

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After reaching a new six-week high at $1,937.39, the gold price (XAU/USD) displayed a corrective move during the Asian session. As gold's allure is extremely strong amid growing concerns about the global banking crisis, a correction in the precious metal appears to be short-lived. Credit Suisse's debacle following the failure of Silicon Valley Bank (SVB) has triggered the risk of global financial instability, and uncertainty over the Federal Reserve's (Fed) upcoming interest rate decision has bolstered the case for the Gold price.

 

S&P500 futures have shown a recovery move following Wednesday's sell-off as investors assess the banking sector's uncertainty. However, the motif of risk aversion has not yet completely subsided.

 

During the Asian session, the US Dollar Index (DXY) is fluctuating in a narrow range of around 104.60. It appears that the impact of banking sector turmoil is maturing for the USD Index, and investors are beginning to discount expectations for next week's monetary policy. According to the CME FedWatch instrument, the probability that Fed chair Jerome Powell will raise interest rates by 25 basis points (bps) has risen above 70%. While 30% of the probabilities support maintaining the current interest rate policy.

 

Increasing odds of a status quo monetary policy are supported by a declining Consumer Price Index (CPI), a rising Unemployment Rate, sluggish Retail Sales, and a declining Producer Price Index (PPI).