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On July 22, Mitsubishi Electric and Sony announced a joint venture to provide factory automation services by combining their respective technological strengths in artificial intelligence and image sensors. The joint venture, named Advanced Vision Solutions, will begin operations in October, with Mitsubishi Electric holding a 60% stake and Sony holding 40%. Just a week earlier, Nvidia (NVDA.O) CEO Jensen Huang urged Japan to fully commit to the upcoming wave of physical AI.Nikita Bier, Product Manager at X: As the product manager at X, I have conducted a thorough review of all applicable laws and concluded that I do not have the authority to shut down LinkedIn.Beyer: Initiated coverage research on Coreweave (CRWV.O), giving it an Outperform rating; target price of $100.Beyer: Initiating coverage research on IBM (IBM.N) with a neutral rating and a target price of $230.On July 22, Japans imports surged 25.4% year-on-year in June, reaching a record 11.3 trillion yen (approximately US$69.25 billion), driven by a weaker yen and soaring oil prices. This increase exceeded market expectations of 21% and was the fastest pace since November 2022, resulting in a trade deficit of 406.9 billion yen (approximately US$2.49 billion) in June, far exceeding the previously predicted 120 billion yen. While crude oil imports declined by 13.7% year-on-year, the import value surged by 59.3%, with yen-denominated unit prices also reaching a record high, highlighting that current inflationary pressures are largely driven by exchange rate factors rather than demand growth. This means that the yens appreciation has a more significant effect on alleviating import cost pressures than potential short-term changes in oil demand. On the export side, the resilience of demand from data centers related to artificial intelligence provides the Bank of Japan with real economic growth support that can be used to offset inflationary risks. This combination of factors suggests that the Bank of Japan is more likely to adopt a cautious, gradual interest rate hike path rather than a sudden and sharp tightening of policy. The market currently expects the Bank of Japan to keep interest rates unchanged next week, but will maintain its tightening policy stance.

Before the US PMI is released, the gold price is expected to rise beyond $1,740 per ounce

Daniel Rogers

Aug 23, 2022 14:48

 截屏2022-08-22 下午5.31.01_1024x576.png

 

On the back of conflicting forecasts for US Purchasing Managers Index (PMI) data, the gold price (XAU/USD) is trying to break above $1,740.00. A new monthly low of $1,727.85 was recorded for the precious metal on Monday, but it has since rallied strongly. Given the lack of impetus in the upward trend, the gold price is likely to stay volatile. However, a pullback may be less profitable.

 

The consensus for the S&P Global Manufacturing PMI is 51.5, which is down from the prior reading of 52.2. When compared to its previous reading of 47.3, the Services PMI has room to grow.

 

The yellow metal has been supported by the disappointing early estimates of US Durable Goods Orders. From a previous release of 2%, the market expects the economic figures to sharply decrease to 0.5%. It's important to note that the most recent reading showed no change in underlying pricing pressures, which stood at 5.9%. So, we expect to see little change, if any, in the Durable Goods Orders numbers. Unfortunately, a precipitous drop in economic statistics portends a precipitous drop in demand.

 

The other thing that will be in the spotlight is Federal Reserve (Fed) chair Jerome Powell's remarks from the Jackson Hole Economic Symposium. US economic conditions and Fed Powell's direction on inflationary pressures and interest rates will be determined by him.

 

Gold prices on an hourly scale are looking to continue their recovery after breaking above the $1,729.44 61.8% Fibonacci retracement (set from the low of $1,680.91 on July 21 to the high of $1,807.93 on August 10). Gold has been testing the resistance of the 20-period Exponential Moving Average (EMA) around $1,738.00; a sustained move above this level would signal a change in trend toward the bullish side.

 

Furthermore, the Relative Strength Index (14), which had been negative in the 20.00-40.00 range, has moved into the bullish 40.00-60.00 zone, indicating that gold prices are currently not bearish.

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