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On January 30th, Inspur Software announced that it expects to achieve a net profit attributable to owners of the parent company of approximately RMB -270 million in 2025. In 2025, affected by tight funds for clients, delayed project bidding, and delayed delivery and acceptance, the companys operating revenue declined, and gross profit decreased. During the reporting period, the company improved management efficiency through refined management and strengthened accounts receivable and collection management, resulting in a significant improvement in the net cash flow generated from operating activities compared to the same period last year. However, due to the decline in operating revenue and gross profit, the company expects to incur a loss.On January 30th, Bainaqiancheng announced that it expects a net loss of 800 million to 1.2 billion yuan in 2025. Affected by intensified competition in the content market, the companys multi-format film and television content segment faced significant pressure during the reporting period. The subject matter and content expression of some existing projects were no longer suitable for the current audiences aesthetic and demand trends in the content market. The company systematically reviewed and optimized its existing projects. For projects under development and existing projects with poor returns and significant uncertainties, measures such as closing down to stop losses, reducing scale, suspending new investment, and seeking external cooperation were taken. Simultaneously, the company retained its strong teams and concentrated resources on high-quality projects and well-performing business segments.On January 30th, the Shanghai Municipal Development and Reform Commission and the Shanghai Municipal Finance Bureau issued a notice regarding the implementation of the 2026 large-scale equipment renewal and consumer goods trade-in policy in Shanghai. The notice includes support for vehicle replacement and replacement. Individual consumers who transfer their passenger vehicles registered in their own name and purchase new energy passenger vehicles included in the "Catalogue of New Energy Vehicle Models Eligible for Vehicle Purchase Tax Reduction or Exemption" or fuel-powered passenger vehicles with an engine displacement of 2.0 liters or less will receive a vehicle replacement subsidy. The subsidy is 8% of the vehicle price for new energy passenger vehicles (maximum 15,000 yuan) and 6% of the vehicle price for fuel-powered passenger vehicles with an engine displacement of 2.0 liters or less (maximum 13,000 yuan).The Bank of Englands consumer credit figures for December were £1.524 billion, below the expected £1.7 billion and the previous figure revised from £2.077 billion to £2.143 billion.The Bank of Englands mortgage lending in December was £4.601 billion, below the expected £4.5 billion and the previous figure revised from £4.49 billion to £4.593 billion.

Fundamental Gold Prediction: The US Dollar Weighs on Gold. Will U.S. Retail Sales Change Direction?

Daniel Rogers

May 16, 2022 11:15

Gold prices declined further last week as traders considered the likelihood of an economic recession in light of the Federal Reserve's more hawkish stance. This was supported by a number of inflation reports from the United States. The consumer price index (CPI) for April came in at 8.3 percent year-over-year, exceeding analysts' projections of 8.1 percent year-over-year. The producer price index (PPI) for the same period shows that factory-gate prices have risen by 11.0 percent year-over-year.

 

This batch of inflation data contributed to the dollar's appreciation against the majority of its major rivals. A stronger Dollar often works against the price of bullion. Due mostly to Finland's announcement that it plans to strongly pursue NATO membership, the Euro depreciated. This drew a strong response from Russia, which vowed to respond, so reinforcing the risk-averse sentiment that has been permeating the Eurozone.

 

During the upcoming week, traders will closely monitor numerous high-profile data releases that may affect XAU prices. The US retail sales report for April may have the most impact on market mood. According to a Bloomberg survey, analysts expect April retail sales to increase by 0.7% month-over-month. A stronger-than-expected figure may alleviate some concerns about an impending economic recession. As the US Dollar has been operating as a safe haven for traders, this would likely serve to weaken the currency and may allow gold to climb by reducing risk aversion.

Gold versus US Dollar Chart Weekly

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