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Israeli Prime Minister Netanyahu: Israel and Lebanon agree that Hezbollah and Iran must leave.Israeli Prime Minister Netanyahu: The Israel Defense Forces will remain in Lebanon until the Hezbollah threat is eliminated.Domestic News: 1. The China Securities Regulatory Commission (CSRC) convened a meeting to promote the coordinated work of the central and local governments in the comprehensive system for preventing and punishing financial fraud in the capital market. 2. The Ministry of Finance reported that from January to May, the total operating revenue of state-owned and state-controlled enterprises nationwide decreased by 0.7% year-on-year, while total profits increased by 3.5% year-on-year. 3. Eight departments issued a notice on the "Implementation Opinions on Promoting the High-Quality Development of the Industrial Internet," aiming to build 50,000 industrial 5G private networks by 2030. 4. The Ministry of Commerce announced a preliminary ruling on the anti-dumping investigation of pea starch originating from Canada: dumping exists. International News: 1. Federal Reserves Hamak stated that the job market is close to full employment and the growth outlook is good. Inflation remains too high, and the Fed may need to consider raising interest rates. 2. SK Hynix has submitted its Nasdaq listing application. 3. The US Supreme Court overturned President Trumps restrictions on birthright citizenship. 4. OpenAI found an optimization solution that can halve inference costs. 5. US JOLTs job openings in May were 7.594 million, below the expected 7.3 million, and the previous figure was revised from 7.618 million to 7.585 million. 6. Data shows that the UAEs oil exports hit a record high after leaving OPEC. 7. In the four weeks ending June 28, Russias average daily crude oil exports rose to 4.13 million barrels, the highest level since the outbreak of the Russia-Ukraine conflict in 2022. 8. EU: New regulations aimed at protecting the EU steel industry will take effect on July 1. 9. Abu Dhabi National Oil Company proposed a new oil pricing system to better reflect broader market conditions. 10. Japans Ministry of Finance stated that Japans foreign exchange market intervention was zero during the period from April 28 to May 27. 11. Middle East Situation: ① Three different shipping routes have emerged in the Strait of Hormuz. ② Oman has reportedly proposed a toll scheme for the Strait of Hormuz; whether it will be mandatory is controversial. ③ Iranian Foreign Ministry Spokesperson Baghae: Dialogue with mediator Qatar on implementing the interim agreement between Iran and the United States may be held in Doha on Wednesday, with topics including the release of unfrozen assets. ④ Qatari Foreign Ministry Spokesperson: There are currently no plans for a high-level meeting between the US and Iran. ⑤ Iranian Foreign Ministry spokesman Bagaei: Iran is determined to safeguard its right to manage the Strait of Hormuz.1. According to data from shipping survey agency ITS, Malaysias palm oil exports from June 1st to 30th totaled 1,340,842 tons, a 4.7% increase compared to 1,280,897 tons exported during the same period last month. 2. The Jiangsu Securities Regulatory Bureau disclosed that, upon investigation, it was found that Donghai Futures Co., Ltd. failed to effectively prevent and control risks in accordance with the principle of prudent operation during the operation of some asset management plans, and failed to earnestly fulfill its active management responsibilities. The Jiangsu Securities Regulatory Bureau decided to take supervisory and management measures against the company by conducting a regulatory interview, which will be recorded in the securities and futures market integrity file. The companys principal responsible person is required to bring their ID card to the Jiangsu Securities Regulatory Bureau for a regulatory interview on July 20, 2026. 3. According to Saudi Arabias Al Arabiya TV, citing sources, Iranian and US delegations will hold indirect negotiations in Qatar tomorrow with the participation of mediators. 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Preliminary ship tracking data from Kpler and Vortexa show that the UAE boosted its crude oil and condensate exports to record highs in June, shortly after withdrawing from OPEC. Kpler senior oil analyst Rauball stated that the UAEs crude oil and condensate exports averaged approximately 3.7 million barrels per day this month, a record high and well above the pre-Middle East conflict levels of 3.1 to 3.3 million barrels per day. 8. According to the New York Times: An Iranian official and four informed diplomatic sources revealed that despite public U.S. opposition, Iran and Oman are moving forward with plans to charge ships passing through the Strait of Hormuz. Oman recently formally submitted a proposal to the U.S. and other Western allies, requiring shipping companies to pay service fees for using the strait. Omans proposal partially draws on the operational models of the Strait of Malacca and the Singapore Strait; in this Asian waterway, a private foundation is responsible for collecting voluntary donations to ensure navigational safety. Diplomats stated that any fees for the Strait of Hormuz would be voluntary. However, Iranian officials have stated that these fees are mandatory. 9. According to the European Commission, as of June 28, the EUs palm oil imports for 2025/26 totaled 2.85 million tons, compared to 3 million tons in the same period last year. Rapeseed imports totaled 5.36 million tons, compared to 7.54 million tons in the same period last year. Soybean meal imports totaled 18.91 million tons, compared to 19.32 million tons in the same period last year. Soybean imports totaled 13.98 million tons, compared to 14.52 million tons in the same period last year. 10. CNN reported on June 29 that three different shipping routes have now emerged in the Strait of Hormuz. The first route is located in the northern part of the Strait of Hormuz and is controlled by Iran. The second shipping route crosses the middle of the Strait of Hormuz and was the regular international shipping route before the Strait of Hormuz was blocked; the third shipping route is located in the southern part of the Strait, passing through the waters near Oman, and is coordinated and operated by Oman, the United States, and the International Maritime Organization. The article analyzes that due to the different management bodies for the various shipping routes, the shipping order in the Strait of Hormuz has become more complex. 11. Statistics Canada released its preliminary report on major field crop acreage, stating that the countrys canola planting area increased by 8.4% this year to 23.4 million acres, surpassing the previous record high of 23 million acres set in 2017, with a projected planting area of 21.6 million acres in 2025. Total wheat planting area in Canada decreased by 5.9% to 25.3 million acres, with a projected 26.9 million acres in 2025. In Canada, hard wheat acreage fell 10.3% to 5.9 million acres, down from 6.5 million acres in 2025; spring wheat acreage fell 3.9% to 18.1 million acres; and winter wheat acreage was 1.4 million acres, down 11.5% from the previous year. Soybean acreage in Canada this year was 6 million acres, an increase of 3.1%.Amazon Web Services (AWS) will invest $1 billion to embed artificial intelligence engineers into customer teams.

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%.