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Market news: Nvidia CEO Jensen Huang will meet with Samsung and Hyundai executives on October 30.1. All three major U.S. stock indices closed higher, with the Dow Jones Industrial Average up 0.71%, the S&P 500 up 1.23%, and the Nasdaq up 1.86%. Nvidia rose nearly 3%, and Apple rose over 2%, leading the Dow. The Wind S7 Index rose 2.4%, with Tesla up over 4%, Google up over 3%, and Qualcomm up over 11%, reaching a new high since July 2024. Most Chinese concept stocks rose, with Daquan New Energy up over 14% and Xpeng Motors up over 6%. The temporary easing of international trade tensions boosted market confidence. This week, investors focused on the earnings reports of several tech giants and the Federal Reserves interest rate meeting. 2. All three major European stock indices closed slightly higher, with Germanys DAX up 0.28%, Frances CAC 40 up 0.16%, and the UKs FTSE 100 up 0.09%. The basic consensus reached in Sino-U.S. trade negotiations boosted market risk appetite. 3. U.S. Treasury yields fell across the board, with the 2-year Treasury yield down 0.64 basis points to 3.482%, the 3-year Treasury yield down 1.40 basis points to 3.480%, the 5-year Treasury yield down 1.92 basis points to 3.595%, the 10-year Treasury yield down 3.46 basis points to 3.976%, and the 30-year Treasury yield down 5.02 basis points to 4.549%. Market expectations of a Fed rate cut, coupled with a lack of economic data due to the government shutdown, have intensified safe-haven demand. 4. International precious metal futures generally closed lower, with COMEX gold futures down 3.40% to $3,997.00 per ounce and COMEX silver futures down 3.61% to $46.83 per ounce. Expectations of a Fed rate cut have intensified, but easing international political tensions have reduced safe-haven demand. The increasing U.S. government debt burden provides long-term support for gold. 5. The main contract of U.S. oil closed up 0.08% at $61.55 per barrel; the main contract of Brent crude oil fell 0.25% to $65.04 per barrel.On October 28th, Pony.ai announced on the Hong Kong Stock Exchange that it plans to issue 41,955,700 shares (subject to the exercise of the Offer Size Adjustment Option and the Over-allotment Option) for its Hong Kong listing. Unless otherwise announced, the offer price will not exceed HK$180 per share. Trading of the shares on the Hong Kong Stock Exchange is expected to begin on November 6th (the same date as competitor WeRide).According to Japans Asahi Shimbun: Japan and South Korea are coordinating arrangements to hold the first summit meeting between Japanese Prime Minister Sanae Takaichi and South Korean President Lee Jae-myung on October 30 during the APEC summit in South Korea.On October 28, WeRide announced on the Hong Kong Stock Exchange that it plans to issue 88,250,000 shares (subject to the exercise of the over-allotment option) in its Hong Kong listing. Unless otherwise announced, the offer price will not exceed HK$35 per share. The shares are expected to begin trading on the Hong Kong Stock Exchange on November 6.

Fundamental Gold Prediction: The US Dollar Weighs on Gold. Will U.S. Retail Sales Change Direction?

Daniel Rogers

May 16, 2022 11:15

Gold prices declined further last week as traders considered the likelihood of an economic recession in light of the Federal Reserve's more hawkish stance. This was supported by a number of inflation reports from the United States. The consumer price index (CPI) for April came in at 8.3 percent year-over-year, exceeding analysts' projections of 8.1 percent year-over-year. The producer price index (PPI) for the same period shows that factory-gate prices have risen by 11.0 percent year-over-year.

 

This batch of inflation data contributed to the dollar's appreciation against the majority of its major rivals. A stronger Dollar often works against the price of bullion. Due mostly to Finland's announcement that it plans to strongly pursue NATO membership, the Euro depreciated. This drew a strong response from Russia, which vowed to respond, so reinforcing the risk-averse sentiment that has been permeating the Eurozone.

 

During the upcoming week, traders will closely monitor numerous high-profile data releases that may affect XAU prices. The US retail sales report for April may have the most impact on market mood. According to a Bloomberg survey, analysts expect April retail sales to increase by 0.7% month-over-month. A stronger-than-expected figure may alleviate some concerns about an impending economic recession. As the US Dollar has been operating as a safe haven for traders, this would likely serve to weaken the currency and may allow gold to climb by reducing risk aversion.

Gold versus US Dollar Chart Weekly

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