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On May 7, Li Yunze, director of the Financial Supervision Bureau, said at a press conference held by the State Council Information Office that the role of insurance funds as patient and long-term capital should be fully utilized, and efforts to enter the market to stabilize the market should be increased. Three measures will be introduced in the next step to support a stable and active capital market. First, the pilot scope of long-term investment of insurance funds will be expanded to inject more incremental funds into the market; second, the regulatory rules on solvency will be adjusted to further reduce the risk factor of stock investment by 10%, and insurance companies will be encouraged to increase their efforts to enter the market; third, a long-term assessment mechanism will be promoted to promote long-term money and long-term investment.On May 7, Li Yunze, director of the Financial Supervision Bureau, said at a press conference held by the State Council Information Office that stabilizing the property and stock markets is of great significance to boosting social expectations and unblocking the domestic demand cycle. In terms of stabilizing the property market, the Financial Supervision Bureau has approved white-list loans from commercial banks to 6.7 trillion yuan.Li Yunze, director of the State Financial Regulatory Administration, said at a press conference held by the State Council Information Office on May 7 that the long-term reserves for pension and health insurance exceed 10 trillion yuan.The New Taiwan dollar turned from appreciating by more than 1 cent to depreciating against the U.S. dollar in early trading, closing at 30.285.Li Yunze, director of the State Financial Regulatory Administration, introduced the latest progress in capital replenishment at a press conference held by the State Information Office on May 7: large commercial banks are accelerating implementation, large insurance groups have put it on the agenda, and small and medium-sized financial institutions are replenishing in an orderly manner through multiple channels.

Gold Price Prediction: XAU/USD forges bullish path above $1,960, Fed and banking unrest anticipated

Daniel Rogers

Mar 21, 2023 13:57

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Following a retracement from a Year-To-Date (YTD) high, the gold price (XAU / USD) regains upward momentum amid cautious optimism in the banking sector. The market's inaction during the Japanese holiday as well as the failings of US Treasury bond yields to prolong the recent corrective bounce off a six-month low could lend support to the recovery movements.

 

Headlines indicating that U.S. policymakers are searching for ways to insure all bank deposits and that major central banks are rushing to keep markets liquid with the US Dollar flow appear to favor Gold purchasers.

 

Notably, the most recent reading of the CME's FedWatch tool indicates that the likelihood of a 0.25% Fed rate rise on Wednesday is now close to 75%, up from 65% last week. This allows US Treasury bond yields to rebound. However, Treasury bond yields remain inactive due to Japan's national holidays, which restrict bond trading in Asia. The previous day saw the 10-year and 2-year US Treasury bond yields rebound from their lowest levels since September 2022.

 

Gold traders will be keenly interested in the Fed's response to the banking crisis, as the 0.25 percentage point rate hike is a foregone conclusion. Should the dot-plot hint at a policy reversal, the US Dollar could experience further losses, which could propel the XAU/USD exchange rate.


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