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Japans April trade balance will be released in ten minutes.On June 8th, South Korean internet giant NAVER and NVIDIA announced that NAVER will expand its self-developed AI infrastructure based on the NVIDIA DSX platform. The initial phase will be launched at the Sejong GAK data center with a capacity of 55 megawatts, with plans to gradually expand to gigawatt-level scale, providing services to South Korean enterprises, manufacturers, government agencies, and global AI cloud customers. At the model level, NAVER will utilize NVIDIAs full-stack AI platform to advance the development of its next-generation HyperCLOVAX model and fine-tune it based on the NVIDIA Nemotron3 Ultra open-source model, creating a localized model for the Korean-speaking and global enterprise markets. NAVER also becomes the first South Korean company to join the NVIDIA Nemotron Alliance and plans to launch its AI agent platform in South Korea in the second half of the year.On June 8th, SK Telecom and NVIDIA announced that SK Telecom plans to build a gigawatt-scale AI cloud infrastructure in South Korea based on the NVIDIA DSX platform. The first AI factory is expected to be operational in 2027, with plans to expand to a wider area in Asia in the future. This AI cloud will be built on the NVIDIA DSX full-stack reference architecture, supporting training, inference, and agent workloads, covering sovereign AI, physical AI, and enterprise AI application scenarios. SK Telecom will also join the NVIDIA Cloud Partner Program. At the same time, NVIDIA and the SK Group announced plans to conduct joint research to explore next-generation AI factory architectures, focusing on full-stack innovation from chips to the power grid, covering accelerated computing, storage technologies, and data center operations.Futures News, June 8th: The US-Iran war has entered its 100th day, with military friction escalating and the situation showing no signs of improvement. Iran launched a surprise attack on Israel in the early hours of the morning, effectively breaking the ceasefire agreement and deepening the shipping crisis in the Straits of Hormuz; OPEC+s increased production is insufficient to offset the shortfall; US inventories have declined for seven consecutive weeks, and global crude oil inventories are at low levels. Multiple factors have pushed up risk premiums, resulting in a significant gap up in early Asian trading this week.On June 8th, local time, Ukrainian President Volodymyr Zelenskyy unveiled a new concept for resolving the conflict on the 7th. The core of the plan is a ceasefire to maintain the current posture, followed by negotiations to resolve disputes and quickly end the military conflict, maximizing the protection of civilian and military lives. Zelenskyy stated that this model is currently the fastest way to end the conflict. He pointed out that maintaining the current ceasefire does not mean Ukraine is relinquishing its territorial sovereignty; the core purpose is to protect the lives of its citizens, solidify the current situation, and create favorable conditions and sufficient space for subsequent peace negotiations. Zelenskyy also set clear requirements for the ceasefire conditions. He emphasized that the ceasefire must be comprehensive and monitorable, requiring the participation of international partners such as the United States and Europe to establish a sound international monitoring mechanism. Furthermore, he added that the ceasefire is only a phase, not the final outcome. After a comprehensive ceasefire is implemented, all parties must immediately initiate a diplomatic mediation process, relying on dialogue and consultation to explore a long-term solution to completely end the war.

Forecast for Gold Price: XAU/USD consolidates above $2,000 as investors await initial US S&P PMI data

Daniel Rogers

Apr 21, 2023 13:52

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During the Asian session, the price of gold (XAU / USD) is oscillating above the psychological resistance of $2,000.00. After a gradual increase, the price of gold has leveled off near $2,005.00 as investors await the release of preliminary S&P PMI data for the United States.

 

S&P500 futures have added some gains during the Asian session following three consecutive declines. As a result of Elon Musk's price-cutting frenzy, Tesla's revenue projections were gloomy, which dampened market sentiment. Near 101.77, the US Dollar Index (DXY) has extended its correction. The USD Index has been consolidating in a range between 100.90 and 102.03 for the past several trading sessions. Therefore, a move that exceeds the previously specified limit will be considered decisive.

 

The subdued USD index weighs on US Treasury yields as well. The demand for U.S. government bonds has increased as weekly unemployment claims have increased. The number of individuals claiming unemployment benefits rose to 245K, exceeding the consensus estimate of 240K. This indicated a softening in the labor market and bolstered expectations that the Federal Reserve (Fed) will not raise interest rates after the monetary policy meeting in May.

 

In the future, the publication of the preliminary US S&P PMI data will determine the impact of the Fed's rate hikes on the scope of economic activity. According to projections, the Manufacturing PMI and Services PMI will decline to 49.0 and 51.5, respectively. A preliminary PMI reading that is weaker than anticipated could impact heavily on the U.S. dollar.