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Ukrainian President Zelensky: It is too early to draw conclusions based on todays discussions.Sources say that protests by contractors have disrupted access roads to the Escondida and Saldivar copper mines in Chile.On January 24th, according to foreign media reports, a core group of political parties in the European Union is demanding that EU banking and market regulators, while fulfilling their supervisory responsibilities in the financial sector, should take into account the EUs declining industrial competitiveness. This call comes as the EU is undertaking a comprehensive revision of its financial regulatory framework. A document shows that the European Peoples Party (EPP), the largest group in the European Parliament and a center-right bloc, stated that "to help the EU achieve its broader economic growth goals," the scope of responsibilities for regulators should be broadened to explicitly include competitiveness as a consideration. These requirements would apply to all institutions responsible for supervising the EUs banking, securities, and insurance sectors. The Christian Democratic Union (CDU), led by German Chancellor Merz, has also joined the call for reduced regulatory burdens. Merz stated frankly in a meeting with banking officials last year that current EU financial regulations are "too stringent."January 24th - According to foreign media reports, the Mexican government is reassessing its decision to continue oil shipments to Cuba due to rising concerns about potential US retaliation or increased diplomatic pressure. The government of Mexican President Sinbaum believes that continuing fuel supplies to Cuba could trigger retaliatory measures or diplomatic pressure from the United States. Cuba faced severe energy shortages and frequent power outages after Venezuelan crude oil exports to Cuba were disrupted. Subsequently, Mexico became one of Cubas major oil suppliers, which the Mexican government describes as humanitarian aid and says is in line with long-standing bilateral agreements. Although the specific scale of shipments is not transparent, these supplies have significantly improved Cubas ability to obtain fuel.Sources say Mexico is assessing whether to halt oil shipments to Cuba due to fears of U.S. retaliation.

Gold Price Prediction: XAU/USD anticipates additional gains ahead of China and U.S. inflation

Alina Haynes

Jan 11, 2023 11:54

Gold price (XAU/USD) demonstrates usual pre-data concern as it approaches $1,875 on Wednesday morning, exploring a three-day rally around the highest levels since May 2022. In doing so, gold demonstrates the market's faith in the traditional safe-haven, even if the US Dollar recovers from its multi-day low. The uncertainty surrounding the next steps of the US Federal Reserve (Fed) and the pessimistic economic forecasts of the World Bank (WB), not to mention cautious optimism towards China, may be to blame.

 

Federal Reserve (Fed) Chair Jerome Powell's remarks at Riksbank's International Symposium on Central Bank Independence were unable to provide additional clarification on the US central bank's monetary policy outlook, which prompted a stampede for gold in the face of uncertainty. In his most recent public appearances, the policymaker lauded the US central bank's latest steps while emphasizing the Fed's independence and lack of commitment to climate control. Notably, Federal Reserve Governor Michelle Bowman seemed hawkish when she stated that additional rate hikes are required to combat excessive inflation, which should have pressured the XAU/USD bulls in the aftermath.

 

Notably, the recent softening of hawkish bets on the Fed's next moves, as well as lower US data, appear to keep gold investors optimistic, despite the Federal Reserve's efforts to defend its tight monetary policy. Tuesday, the US NFIB Business Optimism Index for December fell to its lowest level since 2013 if various anxieties caused by the worldwide Covid wave are disregarded. In addition, US Wholesale Inventories for November stayed constant at 1.0% growth.

 

Alternatively, a rebound in the US Dollar Index (DXY) from the seven-month low appears to pose a threat to the Gold price, due to the inverse link between the XAU/USD and the dollar's index against the six main currencies. Tuesday marked the conclusion of a two-day downturn for the DXY as it rebounded from the multiday low to settle at 103.30. In doing so, the US Dollar Index tracked the firmer US 10-year Treasury note yields, which increased 10 basis points (bps) to 3.61 percent, falling one basis point (bp) to 3.60 percent at the latest.

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