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Conflict Updates: 1. Riyadh, the Saudi capital, was hit by an airstrike; a Saudi Aramco fuel storage tank near Riyadh airport caught fire. 2. The Houthi rebels claimed Saudi Arabia launched 300 airstrikes this week. 3. The son of the Director-General of the Gaza Ministry of Health was killed by Israeli artillery fire. 4. According to the Syrian Arab News Agency (SANA) on the 19th, an explosion occurred on the 18th at a Syrian transitional government army outpost in Deir ez-Zor province in eastern Syria, killing 11 personnel from the transitional governments Ministry of Defense. 5. The Houthi rebels in Yemen claimed responsibility for attacks on Saudi Arabia, targeting Saudi Aramco facilities in Riyadh and Yanbu. 6. Saudi Arabia claimed its air defense system successfully shot down a ballistic missile aimed at Riyadh. Other Updates: 1. Iran stated it has conveyed three conditions for negotiations to Washington through Qatar and is awaiting Trumps decision. 2. Iranian Foreign Ministry spokesman Bagae stated that the Pakistani Interior Ministers visit will focus on bilateral relations between Iran and Pakistan and does not involve conveying any specific information regarding mediation. 3. Saudi Arabia is running out of interceptor missiles and urgently requests assistance. 4. Foreign media: Saudi Arabia makes a rare request for support to Israel. 5. Italy reportedly plans to send up to four ships to the Bab el-Mandeb Strait. 6. Iranian sources: The US says it is ready to negotiate with Iran. 7. Iranian Foreign Minister speaks with Pakistani Foreign Minister to discuss regional developments. 8. Israeli media: Trump is not expected to meet with Netanyahu during next weeks UN General Assembly. 9. Iranian Foreign Ministry: Participation in the UN General Assembly is Irans legitimate right, not a "favor" from other countries. 10. Turkish Foreign Minister: Will not accept Saudi Arabia being drawn into the US-Iran conflict. 11. Mohsen Rezaei, Secretary of Irans Supreme National Security Council, stated that Iran has presented the US government with seven conditions necessary to initiate any negotiations. 12. US Central Command Commander: The US has assisted in the passage of over 1 billion barrels of oil through the Strait of Hormuz in the past two months. Mines in the main navigation channels of the Strait of Hormuz have been cleared.The Peoples Bank of China (PBOC) announced today that it conducted 32 billion yuan of 7-day reverse repurchase operations, with both the bid and winning bids amounting to 32 billion yuan. The interest rate for the operation was 1.40%.On September 20th, according to the "Announcement on Launching a Series of Special Actions for Personal Information Protection in 2026" jointly issued by the Cyberspace Administration of China, the Ministry of Industry and Information Technology, and the Ministry of Public Security, and based on the "Cybersecurity Law," "Personal Information Protection Law," "Regulations on the Management of Network Data Security," and "Methods for Identifying Illegal and Irregular Collection and Use of Personal Information by Apps," the Cyberspace Administration of China organized an inspection of the collection and use of personal information by apps (including mini-programs). The following issues are hereby reported: 1. Six apps, including FlowFit and Scooter Memorization, failed to disclose their rules for collecting and using personal information. 2. Four apps, including iNAPCare and Chinese-English Translator, forcibly or frequently requested unnecessary permissions. 3. Nine apps, including GPS Acreage Meter and ROI Calculator, failed to fully and accurately list the personal information collected and used. 4. Eleven apps, including Hongjuan Reading and Daochen Smart Sports, failed to provide an effective account cancellation function. The operators of the relevant apps should complete rectification within 15 working days from the date of this announcement and report the rectification status to our office. Our office will conduct verification in conjunction with relevant departments and, based on the rectification status, take appropriate action and impose penalties in accordance with laws and regulations.On September 20, the Peoples Bank of China announced that it would keep the one-year and five-year loan prime rates (LPR) unchanged at 3% and 3.5%, respectively.On September 20, the U.S. embassies in Bahrain, Oman, the UAE, Saudi Arabia, Qatar, Kuwait, Jordan, Israel, Lebanon, and Iraq issued security alerts stating that given the tense situation in the Middle East, the current security environment remains complex, with unforeseen escalation risks. U.S. citizens currently in the Middle East should remain highly vigilant and be aware of potential flight cancellations, airspace closures, and travel disruptions. U.S. citizens outside the Middle East should seriously reconsider their travel plans to or transit through the region. The security alerts all mention the recent conflict between the Houthi rebels in Yemen and Saudi Arabia, stating that this military conflict has the potential to escalate rapidly, and U.S. citizens traveling to or from the region should closely monitor the latest information regarding airport and airline operations.

Gold Price Prediction: XAU / USD will continue to fluctuate above $1,900 despite a decline in US Inflation

Daniel Rogers

Mar 15, 2023 11:43

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Gold price (XAU / USD) is not in danger despite U.S. inflation figures meeting expectations. Since Monday, the precious metal has been fluctuating continuously between $1,895 and $1,913. The release of the US Consumer Price Index (CPI) failed to produce a significant reaction in the Gold price; however, the upside bias appears to be solidified as wagers on lesser rate increases from the Federal Reserve (Fed) have increased.

 

The US Dollar Index (DXY) is protecting the critical support at 103.50, but it appears vulnerable to further losses as investors' risk appetite has dramatically increased. As market participants purchased S&P500 futures in response to higher odds of a smaller rate hike from Fed chair Jerome Powell, a likely recession in the US economy was postponed, signaling an uptick in optimism.

 

Contrary to the risk-on sentiment, demand for US Treasury bonds remained weak, causing 10-year US Treasury yields to rise above 3.68 percent.

 

The headline As anticipated, the US CPI increased by 0.4% on a monthly basis, and the annual figure decreased from 6.4% to 6.0%. In addition, the core CPI, which excludes crude and food prices, decreased to 5.5% from 5.6% previously. The Fed appears to be pleased with the persistence of a declining trend in US inflation.

 

In the future, investors will closely monitor the US Retail Sales (Feb) data. Monthly Retail Sales data is anticipated to decline by 0.3% compared to the previous release of a 3.0% increase. This indicates that the consumer spending rebound is over and the Fed is on course to achieve its inflation target of 2%.