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February 7th - US President Trump tweeted: "We need more competition to fight our enemies—the national television networks that spread fake news. Facilitating a good deal like Nexstar-Tegna will help combat fake news because it will bring more, higher-level, and more sophisticated competition. Those who oppose it dont fully understand the benefits for them, but they will in the future. Get this deal done!"February 7th - Ukrainian President Volodymyr Zelenskyy posted a message on the 7th local time, stating that he received a briefing from the Ukrainian negotiating team following their talks with the US and Russia. The Ukrainian negotiating team provided him with a detailed overview of the progress of the negotiations. He stated that Ukraine needs to achieve substantial results, and one of the most important foundations for a peaceful resolution is effective security guarantees.February 7th - While the control dispute at Nexperia remains unresolved, another Chinese acquisition of a British chip company is attracting increasing attention. February 7th was the deadline set by the UK government for the mandatory sale of the FTDI acquisition, subject to national security review. This overseas acquisition by China, completed in 2021, is now entering its final countdown to mandatory sale. Back in November 2024, the UK government formally notified the Chinese consortium that it must transfer all its shares in Future Technology Devices International Limited (FTDI), a UK USB bridge chip company, by the stipulated time. The UK cited the National Security and Investments Act (NSIA), which came into effect in 2022, citing "potential threats to national security." An industry insider stated that the Chinese consortium has been trying to secure more time. The latest extension application is still awaiting a response from the UK, and based on past experience, there is still a certain probability of the extension being approved.February 7th - It was learned from the Ministry of Water Resources that, in order to further improve the construction, operation, and management mechanisms of major water conservancy projects, the Ministry of Water Resources and the National Development and Reform Commission recently issued the "Implementation Opinions on Improving the Construction, Operation, and Management Mechanisms of Major Water Conservancy Projects." Major water conservancy projects are important infrastructure for promoting high-quality economic and social development, playing a crucial supporting role in ensuring flood control, water supply, food security, and ecological security. The opinions are divided into four parts: general requirements, improving the high-quality construction mechanism, improving the high-level operation mechanism, and improving the high-efficiency management mechanism. The opinions require that, focusing on the national water network construction goals of "complete systems, safety and reliability, intensive and efficient, green and intelligent, smooth circulation, and orderly regulation," the government should guide and the market should participate, coordinating "hard investment" and "soft construction," improving the construction and operation mechanism of projects with clear responsibilities, diversified investment, and a focus on both quality and efficiency, and forming a comprehensive, data-driven, and efficient management and guarantee system to achieve high-quality construction, high-level operation, and high-efficiency management of major water conservancy projects.Algeria plans to cancel its air services agreement with the United Arab Emirates.

Silver Prices Face Downward Pressure Due to Growing Concerns About Inflation and a New Sanction on Russia

Drake Hampton

Apr 07, 2022 10:30

Tips

  • Silver prices remained stable due to fears about rising inflation.

  • The dollar strengthens upon the publication of the Federal Reserve's minutes.

  • Benchmark rates have continued to rise at a faster rate than the rate of tightening.

  • Oil prices are falling as the US and EIA pledge to release critical stockpiles.

 

Silver prices fell marginally as concerns about inflation increased as a result of the Ukraine crisis. Benchmark yields increased in response to the Fed's hawkish tone and more active policy. The ten-year Treasury yield increased to 2.61 percent, approaching March 2019 highs. Due to growing risk-averse sentiment, new sanctions on Russia resulted in a surge in gold and silver prices. Oil prices declined 2.2% to $99.73 per barrel as the US committed to deploying 60 million barrels from strategic reserves while EIA members committed to release 120 million barrels. 180 million barrels in total would be released.

 

The March FOMC meeting minutes, released on Wednesday, showed that the Fed intends to begin shrinking the balance sheet by $95 billion per month in May. Treasury securities would be limited to a maximum of $60 billion and mortgage-backed securities to a maximum of $35 billion, which would be phased in over three months. Additionally, the discussion indicated that future meetings would likely include a 50-basis-point hike. Members favored more aggressive maneuvers. Additionally, the Fed raised its inflation forecast and decreased its economic growth forecast.

Technical Evaluation

Silver prices fell to $24.4 per ounce today as increasing inflation offsets negative pressure from aggressive rate hikes and a strengthening dollar. New sanctions against Russia may act as a tailwind due to silver's safe-haven characteristics. Silver is under pressure to fall to the $24.00 level as yields rise and the dollar strengthens. This circumstance may result in a breach below support for XAG/USD. Near the horizontal trendline near 23.6, there is support. Resistance is located near the 50-day moving average, which is located near 24.5. Short-term momentum shifted negative as the fast stochastic crossed below the zero line, signaling a sell signal.

 

The medium-term momentum is negative, as indicated by the histogram's negative correlation with the MACD (moving average convergence divergence). The MACD histogram's trajectory is negative but decelerating, indicating an upward trend in price movement.

 

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