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On Thursday, February 26, the Shanghai Gold Exchanges gold T+D contract closed down 0.24% at 1143.0 yuan/gram; the Shanghai Gold Exchanges silver T+D contract closed down 1.13% at 21600.0 yuan/kilogram.February 26 – Indian market regulators have allowed the countrys $384 billion actively managed equity funds to allocate more funds to gold and silver, giving them greater flexibility amid rising global demand for physical assets. Under revised rules from the Securities and Exchange Board of India (SEC), equity funds can invest the remainder of their portfolios (up to 35% of assets) in gold and silver instruments, as well as shares of infrastructure investment trusts (ITTs). By expanding the list of permissible assets, the regulator provides equity funds with a wider range of investment vehicles, which already included money market instruments and other liquid securities. This adjustment is also likely to create new sources of demand for gold and silver. In January, local investors poured more money into gold ETFs than into equity funds, a rare reversal that highlights the growing appeal of gold amid market uncertainty.February 26 – On February 26, Foreign Ministry Spokesperson Mao Ning hosted a regular press conference. A Yonhap News Agency reporter asked: North Korean Workers Party General Secretary Kim Jong Un recently stated that if the United States recognizes North Koreas nuclear-armed status and withdraws its hostile policy towards North Korea, North Korea has no reason not to maintain friendly relations with the United States; however, he called South Koreas recent conciliatory stance a "deception and clumsy trick" and expressed his unwillingness to engage in dialogue. What is Chinas comment on this? "As a close neighbor of the Korean Peninsula, China is concerned about the development and evolution of the situation on the peninsula. Maintaining peace and stability on the peninsula and promoting the political settlement of the peninsula issue are in the interests of all parties, and we hope that all parties will work together to achieve this," Mao Ning said.February 26th Futures News: On February 26th, the Shanghai Futures Exchanges energy and chemical warehouse receipts and changes are as follows: 1. Pulp futures warehouse receipts: 137,537 tons, a decrease of 3,084 tons compared to the previous trading day; 2. Pulp futures mill warehouse receipts: 15,000 tons, unchanged compared to the previous trading day; 3. Offset paper futures warehouse receipts: 0 tons, unchanged compared to the previous trading day; 4. Offset paper futures mill warehouse receipts: 3,840 tons, unchanged compared to the previous trading day; 5. Fuel oil futures warehouse receipts: 0 tons, unchanged compared to the previous trading day. The following figures were unchanged from the previous trading day: 6. Petroleum asphalt futures warehouse receipts: 23,510 tons, unchanged from the previous trading day; 7. Petroleum asphalt futures factory warehouse receipts: 54,110 tons, unchanged from the previous trading day; 8. Medium-sulfur crude oil futures warehouse receipts: 2,557,000 barrels, unchanged from the previous trading day; 9. Low-sulfur fuel oil futures warehouse receipts: 62,730 tons, an increase of 59,950 tons from the previous trading day; 10. Low-sulfur fuel oil futures factory warehouse receipts: 0 tons, unchanged from the previous trading day.February 26th, Futures News: As of 15:00 Beijing time, spot platinum rose 0.86%, and spot palladium rose 4.16%.

The Dollar Fell as Riskier Assets Surged in Response to the Fed's Decision

Daniel Rogers

May 05, 2022 11:13

USD/CAD fell dramatically in the aftermath of the Fed meeting and during the press conference of the Fed Chair. The Federal Reserve concluded its two-day monetary policy meeting on Wednesday, hiking interest rates by 50 basis points and signaling to the markets that it will continue to monitor the market environment.

 

On June 1, the Fed will begin reducing its balance sheet. This was a foregone conclusion and is seen as quantitative tightening.

 

The Federal Reserve will initiate the run-off of 47 billion and 95 billion dollars off its balance sheet in three months. Consumer and business expenditures continue to be robust. Economic activity was almost certainly harmed by the invasion of Ukraine. The Fed stated that the Chinese lockdowns would almost certainly result in more supply chain disruptions.

Technical Evaluation

On Wednesday, the USD/CAD reversed and fell. It reached 2022 highs early in the week and then consolidated. Near the May high of 1.2920, resistance is present. Support is seen near the 1.2685 20-day moving average. The 20-day moving average has crossed above the 50-day moving average, indicating the start of a medium-term uptrend.

 

Short-term momentum reverses to the downside as the fast stochastics may be approaching a crossover sell signal. The medium-term momentum is bullish, since the MACD line generated a buy signal upon crossover. The MACD's trajectory is bullish but decelerating, indicating consolidation.

 

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