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On April 16th, the Nikkei reported on April 15th that Tesla revealed on the 14th that it is considering producing humanoid robots at its Shanghai Gigafactory. The Shanghai factory has been producing electric vehicles since 2019 and will begin producing large-scale energy storage batteries in 2025. This plan to further expand manufacturing to humanoid robots aims to maintain its growth momentum in the Chinese market. Wang Hao, Vice President of Tesla and President of Tesla China, stated on the 14th that with the arrival of the robotics era, the Shanghai Gigafactory, like other Tesla factories, will shoulder an extremely important role as a production base, making significant contributions in areas such as robotics. The report stated that Tesla has not yet released details regarding the specific timing and scale of production. However, according to reports from some Chinese securities companies, its goal is to achieve an annual production capacity of 100,000 units by the end of 2026.The governor of the Polish central bank stated that the likelihood of further interest rate cuts has decreased due to the risk of an energy shock. The probability of holding rates steady or raising them is greater than cutting them.On April 16th, BlackRock believes that the markets mispricing of European Central Bank (ECB) rate hikes presents an opportunity to buy short-term Eurozone bonds. BlackRock executive Turner stated that he does not expect the ECB to raise rates three or even two times this year. BlackRocks view aligns with the ECB policymakers preference to keep rates unchanged at the end of April meeting. As a result, European government bonds rose slightly, and the money market reduced its bets on future rate hikes. Although the swap market still expects two rate hikes in 2026, the reduced likelihood of a rate hike this month is boosting short-term bonds. Two-year German bonds have fallen by about 10 basis points this week, on track for their biggest weekly drop in a year. Turner believes short-term bonds offer the greatest opportunity, but long-term bonds are less attractive due to "decreased government security."Meta Platforms (META.O): Starting today, users in Europe and the UK can opt into Facebook’s new feature that showcases photos and videos and offers suggestions for editing and compositing images.Market news: Starting in May, Russia plans to allocate excess revenue generated from oil prices above $59 per barrel to the National Welfare Fund, in accordance with its budget rules.

Gold Price Prediction: The XAU/USD pair will fall below $1870 as yields rise ahead of Fed Chair Powell's speech

Alina Haynes

Jan 10, 2023 14:55

截屏2023-01-09 下午5.31.06_1024x576.png

 

In the Tokyo session, the gold price (XAU/USD) has fallen below the immediate resistance of $1,870.00. The precious metal has broken through the consolidation formed in the band of $1,870.00-1,881.50 as demand for US government bonds deteriorates ahead of the speech by Federal Reserve (Fed) chairman Jerome Powell on Tuesday.

 

The 10-year US Treasury yields have risen beyond 3.54 percent, dampening risk appetite. Meanwhile, S&P500 futures have become volatile following a sell-off late in Monday's session, signaling caution in establishing positions in risky assets. The US Dollar Index (DXY) is anticipated to attempt a break above the immediate resistance of 103.00 into the auction area.

 

Investors anticipate Fed Powell's speech for fresh cues, as it will provide a head start for the entirety of CY2023. Despite a sharp reduction in December wage inflation, some Fed policymakers continue to endorse a terminal rate prediction of 5.00-5.25%.

 

Mary Daly, president of the San Francisco Fed Bank, argued that interest rates between 5% and 5.25 percent are fair. Also, the president of the Atlanta Federal Reserve bank, Raphael Bostic, anticipates an interest rate peak in the range of 5% to 5.25 percent and the continuation of higher interest rates through CY2023.

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