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On June 22nd, Goldman Sachs predicted that central banks will continue purchasing gold at a rate of 50 tons per month in 2026, slowing to 40 tons per month in 2027. Even with a slight decrease in the monthly purchase rate from previous peaks, this trend still provides sustained structural support for gold prices. A record proportion of central banks have indicated their intention to increase their gold reserves, providing a substantial buffer against downside risks to gold prices. Goldman Sachs forecast implies that even with fluctuations in monthly data, central bank demand will remain one of the most persistent structural support factors for gold prices over the next two years. Another survey conducted by the World Gold Council between February and May, involving 76 central banks, also supports this view. A record 45% of respondents indicated they expect to increase their gold reserves in the next 12 months, the highest level in the surveys history. Approximately 90% of respondents expect global central bank gold holdings to rise during the same period, while the remaining respondents expect them to remain roughly stable. No respondents expected a decline.June 22nd Futures News: Shanghai Futures Exchange (SHFE) Energy and Chemical Warehouse Receipts and Changes: 1. Pulp futures warehouse receipts: 241,467 tons, unchanged from the previous trading day; 2. Pulp futures mill warehouse receipts: 20,000 tons, unchanged from the previous trading day; 3. Offset paper futures warehouse receipts: 1,557 tons, unchanged from the previous trading day; 4. Offset paper futures mill warehouse receipts: 6,640 tons, unchanged from the previous trading day; 5. Fuel oil futures warehouse receipts: 31,160 tons, unchanged from the previous trading day. 6. Petroleum asphalt futures warehouse receipts: 21,120 tons, unchanged from the previous trading day; 7. Petroleum asphalt futures factory warehouse receipts: 90,560 tons, a decrease of 3,500 tons from the previous trading day; 8. Medium-sulfur crude oil futures warehouse receipts: 2,961,000 barrels, unchanged from the previous trading day; 9. Low-sulfur fuel oil futures warehouse receipts: 0 tons, unchanged from the previous trading day; 10. Low-sulfur fuel oil futures factory warehouse receipts: 0 tons, unchanged from the previous trading day.The German DAX 30 index opened 16.39 points higher, or 0.07%, at 25,042.00 on Monday, June 22; the UK FTSE 100 index opened 11.48 points higher, or 0.11%, at 10,374.75; and the French CAC 40 index opened 11.66 points higher, or 0.14%, at 8,432.80. The Stoxx 50 index opened 17.97 points higher, or 0.29%, at 6311.10 on Monday, June 22; the Spanish IBEX 35 index opened 15.59 points higher, or 0.08%, at 19362.99 on Monday, June 22; and the Italian FTSE MIB index opened 44.43 points lower, or 0.08%, at 52804.50 on Monday, June 22.At the close of trading on the 22nd, Guolian An SSE Commodity ETF rose by more than 4%, Dacheng Nonferrous Metals Futures ETF rose slightly, while commodity funds such as Southern Shanghai Gold ETF, E Fund Gold ETF, Bosera Gold ETF, and Guotou UBS Silver Futures (LOF) all fell.According to Futures News on June 22, as of 15:00 Beijing time, spot platinum rose 1.16% and spot palladium rose 1.89%.

NZD/USD falls rapidly from 0.6260 when the RBNZ announces a decline in inflation projections to 3.07 percent

Daniel Rogers

Aug 08, 2022 12:00

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The NZD/USD pair has encountered selling pressure while attempting to surpass the immediate resistance level of 0.6260. The asset has seen bids after the Reserve Bank of New Zealand (RBNZ) announced inflation estimates at 3.07 percent, down from 3.29 percent previously. It could be an indication of waning price pressure, but additional evidence is still needed to support the argument.

 

Price pressures in the New Zealand economy are increasing and have not yet shown signs of weariness. A June report indicates that an inflation rate of 7.3% is adequate to generate headwinds for families. The RBNZ is consistently escalating its policy tightening measures to combat the same. RBNZ Governor Adrian Orr has already increased the Official Cash Rate by 2.50 percentage points.

 

On the front of the US dollar, the US dollar index (DXY) has returned all intraday gains and is currently trading near the day's open at 106.60. While attempting to break over the crucial resistance level of 106.80, the DXY has encountered selling pressure. This week, investors' attention is centered on Wednesday's release of the US Consumer Price Index (CPI).

 

The annual inflation rate is projected to continue at 8.7 percent, down from 9.1 percent in the previous report. Oil prices have been on a downward trend in July, which may be the determining factor for a significant decline in the price increase index. While the US CPI excluding volatile food and oil prices may increase from 5.9 percent to 6.1 percent, the previous reading was 5.9 percent.