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On May 30th, it was reported that on May 29th, Zhang Zhigang, Chairman and Party Secretary of the State Grid Corporation of China, and Zhang Wenfeng, General Manager and Deputy Party Secretary, held talks with Qian Chaoyang, Chairman and Party Secretary of China Southern Power Grid Co., Ltd., at the companys headquarters. Both sides stated that State Grid and China Southern Power Grid share common responsibilities in ensuring energy security, promoting energy transformation, building a strong energy nation, and serving the overall economic and social development. They agreed to focus on the 15th Five-Year Plan and further strengthen communication and deepen cooperation in areas such as technological innovation, policy recommendations, mechanism building, the electricity market, and industrial innovation to better promote high-quality development of the energy and power sector.May 30th - Data released today by the National Energy Administration shows that in April, my country issued 237 million green electricity certificates, of which 74.85% were tradable. In April, 71.1 million green certificates were traded nationwide, including 29.72 million green certificates traded for green electricity.On May 30th, it was reported that the U.S. 24th Marine Expeditionary Unit announced on the 29th that it had officially assumed command of the U.S. Southern Commands area of responsibility—specifically, the waters surrounding Latin America. According to the announcement, the unit has deployed over 1,300 Marines and sailors and has completed the handover from the previously deployed 22nd Marine Expeditionary Unit.On May 30th, Qu Guochun, Director of the Equipment Industry Development Center of the Ministry of Industry and Information Technology, stated at the 2026 Equipment Power Forum that after ten years of development, my countrys high-end equipment industry has seen "accelerated progress in catching up, a gradual increase in keeping pace, and a rapid emergence of leaders." The number of key areas at the worlds leading and advanced levels has reached 60.8%, and the industrys scale accounts for over 60% of the overall equipment manufacturing industry. The international competitiveness of the high-end equipment industry has significantly improved. Specifically, intelligent connected new energy vehicles, rail transit equipment, power equipment, information and communication equipment, new energy equipment, aerospace equipment, high-tech ships, and overseas engineering equipment are already at the worlds leading level. Engineering machinery, building materials equipment, and computer equipment are at the worlds advanced level. However, gaps still exist in areas such as industrial machine tools, agricultural machinery, aviation equipment, robots, instruments and meters, semiconductor equipment, and biomedical equipment.On May 30, local time, Canadian Prime Minister Mark Carney met with Wang Yi, member of the Political Bureau of the CPC Central Committee and Minister of Foreign Affairs, in Ottawa on May 29. Wang Yi conveyed greetings from Chinese leaders to Carney, stating that the Prime Ministers successful visit to China had corrected the course of China-Canada relations and put them back on track. The two leaders decision to build a new type of strategic partnership between China and Canada provides strategic guidance for the development of bilateral relations. Facts have proven that the turnaround in China-Canada relations is in the interests of both countries, meets the expectations of all parties, and is the right choice for Canada. There are no fundamental conflicts of interest between the two countries, and there is enormous room for cooperation. China is willing to work with Canada to respect each other, meet each other halfway, seek common ground while reserving differences, strengthen communication, and deepen cooperation to promote the healthy, stable, and sustainable development of bilateral relations. Both sides should uphold multilateralism, adhere to the rule of international law, and maintain strategic autonomy, supporting free trade and an open world economy, which will benefit the people of both countries and inject stability from China and Canada into a volatile world.

Forecast for the price of gold: XAU/USD heads for the $1,785-87 barrier with an eye on Taiwan and the NFP

Alina Haynes

Aug 04, 2022 11:38

 截屏2022-08-03 下午3.32.14_1024x576.png

 

Despite the most recent decline from the intraday high on Thursday during the Asian session, the price of gold (XAU/USD) shows modest rises at $1,767. The result is that the yellow metal maintains the previous day's recovery from the weekly low despite a weaker US dollar and the market's uncertainty ahead of the crucial US Nonfarm Payrolls (NFP), due for release on Friday.

 

The US Dollar Index (DXY), which earlier on Wednesday re-tested the weekly high with a price of 106.82, is still undecided at 106.35. Nevertheless, recent US dollar weakness also seems to be related to conflicting US statistics and Fedspeak. The market's cautious confidence that China can overcome its economic challenges might also put pressure on the dollar, particularly in light of the previous day's Caixin Services PMI reading for the country of the dragon.

 

On Wednesday, the US ISM Services PMI for July increased to 56.7 from 55.3 the previous month and the market forecast of 53.5, while the US S&P Global Services PMI for July's final reading fell to 47.3 from 52.7 in June and the flash estimate of 47, signaling the first decline in two years. Additionally, China's July Caixin Services PMI shocked investors with positive information.

 

According to James Bullard, president of the St. Louis Federal Reserve Bank, "there is still some distance to go to get to a restrictive monetary policy." The decision-maker expresses preference for the sort of frontloading while stating that he still hopes to reach 3.75 to 4 percent this year.

 

Along with Bullard, Thomas Barkin and Neel Kashkari, the presidents of the Feds in Richmond and Minneapolis, joined the league of Fed hawks to apply downward pressure. The DXY bulls were later subdued, although San Francisco Fed President Mary Daly looked to have sent out conflicting signals. "Markets are ahead of themselves in expecting rate cuts next year," the policymaker added.

 

On a related page, Bloomberg's report claiming there is little support for US-Taiwan relations also appears to benefit gold purchasers. The Democratic Party members' ability to prevent US politicians from associating further with Taiwan, which China dislikes, may be the cause. This might also benefit market sentiment and the XAU/USD. According to persons familiar with the situation, the Biden administration is pressuring Democratic senators to block a bill that would change US policy toward Taiwan, notably by identifying it as a significant non-NATO ally.

 

Because of this, market mood is still gloomy despite appearing optimistic the day before. The US 10-year Treasury rates remain under pressure at approximately 2.71 percent, down three basis points (bps) as of press time, while the S&P 500 Futures remain directionless near 4,150, indicating the sentiment.

 

Following that, the US Good and Services Trade Balance for June is forecast to be $-80.1 billion, down from $-85.5 billion the previous month, and the weekly first claims for unemployment insurance are projected to be 259 thousand, up from 256 thousand. Prior to Friday's US NFP, however, much focus will be placed on the remarks made by ECB and Fed leaders as well as the Sino-American conflict over Taiwan.

 

The purchasers of XAU/USD might remain optimistic given the subdued mood and the declining US dollar.


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