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May 30th - According to an AFP report on May 29th, Iranian state media reported on the 29th that Iranian authorities are preparing a "grand" funeral for the countrys assassinated former Supreme Leader Ali Khamenei. The funeral had been long postponed due to Irans war with the United States and Israel. Although the specific date is still uncertain, Iranian state television quoted Mohsen Mahmoudi, head of the Islamic Propaganda Coordination Committee, as saying, "A special headquarters has been established to prepare for the funeral, and various departments are currently making preparations and arrangements." Ali Khamenei, who led Iran for more than 30 years, was killed in the first wave of US-Israeli attacks that began on February 28th. His son and successor, Mojtaba Khamenei, was also injured in the attacks and has not made a public appearance since taking office.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.

Gold Price Prediction: The XAU/USD pair recovers from $1,755 as Fed and US-China-inspired risk aversion subsides

Daniel Rogers

Aug 03, 2022 14:44

 截屏2022-08-02 下午5.45.57_1024x576.png

 

During Wednesday's Asian session, the gold price (XAU/USD) regains its intraday high above $1,765 while consolidating the largest daily decline in two weeks. In doing so, the yellow metal applauds the US dollar's retreat from its weekly high amid a lackluster Asian session. The recovery steps also take into account the more robust activity statistics from China.

 

The US Dollar Index (DXY) falls from the weekly high around 106.55 to 106.34 at press time as market risk aversion decreases in response to July's stronger China Caixin Services PMI. Consequently, the private services index for the dragon country increased to 55.5% from 48 predicted and 54.5 before.

 

Intraday, S&P 500 Futures increase 0.10 percent, while 10-year US Treasury rates decline 1.5 basis points (bps) to 2.72 percent at the latest.

 

Earlier in the day, the US-China spat over Taiwan attracted significant attention and prolonged the previous day's risk-averse sentiment, which impacted on gold prices. Recently, Taiwan's Ministry of Defense stated that China's drills surrounding Taiwan reflect the country's will to undermine regional peace and stability. It should be emphasized that China's warning to the United States not to play the Taiwan card and its pledge to punish Taipei independence advocates, as well as its restriction of natural sand shipments to the Asian economy, appeared to amplify the risk-averse sentiment and sink the US dollar. Concerns that squabbles between the world's top two economies may have further negative effects on the global economy exacerbated recession worries.

 

James Bullard, president of the Federal Reserve Bank of St. Louis, dismissed worries of a US recession while supporting a 50 basis point (bps) rate rise. According to Reuters, the president of the Federal Reserve Bank of San Francisco, Mary Daly, stated that she is awaiting incoming data to determine whether the Fed should slow the rate rises or maintain the present pace. Reuters reported that Chicago Fed President Charles Evans expressed support for a 50 basis point (bps) rate rise at the September meeting if inflation does not improve. In addition, Loretta Mester, president of the Cleveland Fed, stated that she does not believe the US is experiencing a recession and that the job market is in excellent condition. She acknowledged, though, that inflation has not dropped "at all."

 

US Factory Orders for June and ISM Services PMI for July will combine headlines on China and the Federal Reserve to influence short-term XAU/USD movements.