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According to the Financial Times, Ireland has indicated that an EU capital markets agreement is expected to be reached by the end of the year.Global Chip LOF: Trading in this fund will be suspended from the opening of the market on the afternoon of June 22, 2026 until the market closes on the same day.The yield on Japans 20-year government bonds rose 3.5 basis points to 3.600%.On June 22, Kim Yong-beom, the South Korean presidential policy chief, stated that policymakers need to consider how the benefits of the semiconductor industry boom will spread throughout the entire economic system, warning that historically, excess liquidity has often ended up in the real estate market. Kim pointed out that driven by the global artificial intelligence boom, semiconductor industry profits have soared, and South Koreas nominal economic growth rate has reached its fastest pace in over two decades. Although macroeconomic indicators show the economy has entered an exceptionally strong growth phase, many households and small and medium-sized enterprises have not yet truly felt the benefits. Kim noted that in the first quarter, South Koreas real GDP growth was 3.8%, while real gross domestic income growth reached 13.2%, a significant gap indicating that the rise in chip prices has boosted South Koreas purchasing power far more than the growth in actual output. He stated that most of the resulting income growth has not yet been reflected in the broader economy, but may gradually appear in the coming quarters through bonuses, wage increases, and the repatriation of export revenue, ultimately potentially supporting luxury goods consumption and real estate demand. "Looking back at history, this type of capital has flowed into the real estate market many times, and its difficult to assume this cycle will be different," Kim added.June 22 – Hong Kong Chief Executive John Lee led a delegation from the Hong Kong Special Administrative Region (HKSAR) government to Fujian Province today (June 22) to attend the Fujian-Hong Kong High-Level Meeting and the Fifth Fujian-Hong Kong Cooperation Conference. Lee stated that during the visit, several cooperation projects will be signed between Fujian and Hong Kong. The HKSAR delegation will also conduct on-site research, visiting technology companies and cultural projects to learn about Fujians latest developments in areas such as the digital economy. He expects the visit to be fruitful and to open up broader prospects for Fujian-Hong Kong cooperation.

Despite a Solid U.S. Employment Report, Gold Remains Above $1,700 for a Second Week

Aria Thomas

Oct 08, 2022 10:42

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Gold dropped on Friday but still posted its second straight weekly gain, as an upward run in the opening two days of the week helped the bullion longs weather the September U.S. jobs report, which sent the rival dollar soaring.


The gold futures contract for December on the New York Comex declined $11.50, or 0.7%, to $1,709.30 per ounce. Gold for December rose 2.2% for the week, extending the prior week's 1.5% increase.


The spot price of bullion, which is monitored more closely than futures by some dealers, declined $13.54, or 0.8%, to $1,699.08 by 14:00 ET (18:00 GMT).


Sunil Kumar Dixit, chief technical analyst at SKCharts.com, warned that despite the weekly increase, gold's value may continue to decline if the dollar continues to rise and U.S. bond yields accompany it.


If gold's rejection from the $1,730 resistance zone is confirmed by a break below the $1690-$1685 range, bears would have an easy target of $1,560, according to Dixit. This represents the Fibonacci retracement of 50% of the long-term uptrend from $1,046 to $2,073.


The Dollar Index, which compares the U.S. dollar to the euro and four other currencies, increased for a third straight day, reaching a session high of 112.7 and inching closer to 20-year highs reached a week earlier.


The yield on 10-year U.S. Treasury notes reached a one-week high of 3.906%, just missing September 27's 11-year high of 4.019%.


The dollar and bond yields rose after it was announced that U.S. corporations added 263,000 jobs in September, slightly more than what economists had predicted. The unemployment rate in the United States decreased to 3.5% in September from 3.7% in August, offering an ongoing challenge to the Federal Reserve's fight against inflation.


In an effort to battle inflation, 92% of experts anticipate that the central bank will increase interest rates by 75 basis points for the fourth straight time in November.


Rate increases are antagonistic to risk assets, particularly dollar-denominated commodities, because they increase the transaction and acquisition costs for euro and other currency traders.


Investors perceive gold as a viable alternative to the dollar, despite its reputation as a safe haven. Herein lies the problem with gold. As a result of the Federal Reserve's decision to raise interest rates by 300 basis points this year, from a starting point of just 25 basis points, the dollar has been persistently heading toward two-decade highs.


It is widely anticipated that the Fed will raise interest rates by at least 50 basis points in December, bringing the total increase for the year to 425 points.

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