Happiness Investment Network News, March 24-Wednesday (March 24) Asian market in early trading, the US dollar index is basically stable, now near 92.40. Spot gold rose rapidly in the short-term, and the price of gold just broke through the US$1,730 per ounce mark and approached the level of US$1,735 per ounce. Analysts pointed out that the decline in U.S. Treasury yields provided support for gold prices. In addition, geopolitical tensions have also attracted some safe-haven buying. On the news, many European countries urgently summoned Chinese ambassadors. According to South Korean media reports, North Korea launched two cruise missiles, triggering concerns about the situation on the Korean Peninsula. On Wednesday night Hong Kong time, Fed Chairman Powell will testify again to Congress, and his remarks are expected to still affect market trends.
As the US dollar rose to a two-week high, the price of gold fell on Tuesday, and spot gold closed at US$1726.92 per ounce, down US$11.97 or 0.69%. However, as the U.S. Treasury yield continued to decline, the price of gold rebounded to above $1,730 per ounce in the Asian market on Wednesday, and the current highest hit $1,734.11 per ounce. The yield on US 10-year Treasury bonds in the Asian market set a one-week low in intraday trading to 1.601%.
On Tuesday, local time, Fed Chairman Powell and U.S. Treasury Secretary Yellen said that more measures must be taken to limit the damage caused by the new crown virus pandemic and promote the full recovery of the U.S. economy. In their testimony prepared to testify to the House Financial Services Committee on Tuesday, the two expressed optimism about the prospects of the U.S. economy, but they also warned that the economy needs help. The loose monetary and fiscal policies of the United States help boost demand for gold.
Yellen promised on Tuesday that the U.S. Treasury Department will quickly launch a new rescue plan. Powell testified that the economic recovery is far from complete, so the Fed will “continue to spare no effort to provide the economy with the support it needs”. Powell said that he expects the inflation rate to rise this year, but the magnitude “will not be particularly large, nor Will continue".
Jeff Wright, chief investment officer of Wolfpack Capital, said that Powell and Yellen seem to be working closely together, maintaining good coordination, allowing moderate inflation but not allowing inflation to become too high or out of control. But Wright added that given the scale of the Biden administration's stimulus measures, gold should go higher. Higher spending may put pressure on the U.S. dollar and provide support for the dollar-denominated gold price.
Han Tan, market analyst at FXTM, said: "The price of gold must break through the current downward trend, especially with the recovery of the U.S. dollar. Gold must first break through the 50-day simple moving average before it can send a favorable signal to those who are bullish on gold."
David Meger, head of metal trading at High Ridge Futures, said that the possible surge in new coronary pneumonia cases and weaker economic optimism may hurt yields, which may support gold.
Frank J. Cholly, senior market strategist at RJO Futures, said that now the Fed would rather let inflation overheat than take any action. They don't want to shock the economy that is really starting to take off, which should support the price of gold.
At 22:00 Hong Kong time on Wednesday, Fed Chairman Powell will attend the Senate Banking Committee hearing.
Many European countries urgently summon Chinese ambassadors
After the European Union, the United States, the United Kingdom, and Canada successively announced sanctions on Chinese officials and entities, China immediately announced countermeasures against 10 EU officials and four organizations. After France announced the summoning of the Chinese ambassador on March 22, Germany summoned the Chinese ambassador on March 23, followed by other European countries.
According to Agence France-Presse, the German Foreign Ministry stated that after China imposed sanctions on the European Union, Germany summoned the Chinese ambassador for "urgent talks" on March 23. German Secretary of State Miguel Berger said that China’s sanctions are an inappropriate escalation, which will make relations between the EU and China more tense. The German Ministry of Foreign Affairs urged China to "remove these restrictions immediately."
The German Ministry of Foreign Affairs stated that Chinese Ambassador to Germany Wu Ken had an "emergency meeting" with Secretary of State Berger on March 23rd. During the discussion, Berger made it clear that the German government’s point of view is that China’s sanctions against European parliamentarians, scientists, political institutions, and non-governmental organizations are an inappropriate escalation, leading to unnecessary tensions between the EU and China.
The French Ministry of Foreign Affairs stated on March 22 that it had summoned the Chinese ambassador for China's threat to insult French parliamentarians and researchers and Beijing's decision to sanction EU officials. The French Ministry of Foreign Affairs stated: “Insulting independent researchers and having disputes with elected officials... is unacceptable and has no place in the Sino-French relations that the Chinese Embassy is supposed to help develop.” Lu Shaye, Chinese Ambassador to France, March 23 Japan went to the French Ministry of Foreign Affairs to make representations on the EU sanctions against Chinese individuals and entities and the Taiwan issue.
In addition to Germany and France, Belgium, Denmark, Lithuania and other countries have summoned Chinese ambassadors. The Danish Ministry of Foreign Affairs summoned the Chinese ambassador on March 23 to protest against the inclusion of an institution established by the former Danish prime minister on the sanctions list by Beijing. The Danish Foreign Minister Jeppe Kofod stated that China’s sanctions are “a clear attack on freedom of speech.” Lithuania told the Chinese Ambassador to Lithuania Shen Zhifei that a member of the House of Commons was included in the Chinese sanctions list. protest.
On March 22, local time, the European Union imposed sanctions on four Chinese officials and a construction company for violating the human rights of the Muslim Uyghur community in Xinjiang. This is the first time such punitive measures have been taken against Beijing since 1989. According to the Wall Street Journal, this marked the first time since 1989 that the European Union sanctioned China for human rights violations.
According to news from the official website of the Ministry of Foreign Affairs of China on March 22, the EU imposed unilateral sanctions on relevant individuals and entities in China on the basis of lies and false information under the pretext of the so-called human rights issue in Xinjiang. The European side ignored facts, turned black and white, grossly interfered in China's internal affairs, flagrantly violated international law and the basic norms of international relations, and seriously damaged China-EU relations. China firmly opposes and strongly condemns this. The Chinese government is unwavering in its determination to defend national sovereignty, security, and development interests.
China has decided to impose sanctions on 10 persons and 4 entities that have seriously harmed China’s sovereignty and interests and maliciously spread lies and false information on the European side, including: Member of the European Parliament Petty Koffel, Geller, Glucksman, Ku Chuk, Lexman, Dutch parliament member Scherzma, Belgian parliament member Kograti, Lithuanian parliament member Sakariene, German scholar Zheng Guoen, Swedish scholar Ye Biyang, European Council Political and Security Committee, European Parliament Human Rights Subcommittee, German Mercator Center for Chinese Studies, Danish Democratic Alliance Foundation. Relevant personnel and their family members are prohibited from entering the mainland of China and the Hong Kong and Macao Special Administrative Regions. They and their affiliated companies and institutions have also been restricted from communicating with China.
South Korean media said North Korea launched two cruise missiles for the first missile test in about a year
According to the latest report from Yonhap News Agency on Wednesday (March 23), many South Korean government sources said on Wednesday that they learned that North Korea had launched two cruise missiles into the western waters of the Korean Peninsula on Sunday, both of which were short-range missiles. This is North Korea’s first missile test in about a year and the first since US President Joe Biden took office.
A source said: "They launched cruise missiles, not ballistic missiles." Yonhap News Agency said that it is reported that the South Korean army detected the cruise missiles. Several foreign media previously reported that North Korea launched two short-range missiles on March 21.
North Korea has remained silent on its recent missile activities. If confirmed, this will be the first missile test known to the outside world since North Korea launched multiple short-range cruise missiles into the East China Sea in April last year.
On April 14 last year, North Korea launched multiple short-range cruise missiles from Muncheon City, Gangwon Province to the eastern waters of the peninsula.
According to news from the Associated Press on March 23, two senior officials in the Biden administration confirmed that North Korea had launched a short-range ballistic missile last weekend.
Unlike ballistic missiles, cruise missiles are not subject to sanctions by UN Security Council resolutions.
Prior to this, South Korea and the United States held a nine-day joint military exercise, which lasted until last Thursday. Although Seoul and Washington stated that the exercises were defensive in nature and were small-scale exercises conducted during the COVID-19 pandemic and peace efforts with North Korea, Pyongyang strongly protested and threatened to abolish the military agreement between North Korea and South Korea.
Currently, North Korea is conducting winter exercises. It is believed that the exercise started in December last year and usually lasts until the end of March.
The denuclearization negotiations between North Korea and the United States have reached a deadlock. Since 2019, North Korea has been committed to the development of a variety of conventional weapons, including short-range ballistic missiles, and has repeatedly tested them.
