On October 16th (Thursday), Beijing time, the U.S. federal government continued to shut down, aggravating market concerns. As the U.S. government shutdown entered its third week, the U.S. Senate vetoed the temporary appropriation bill for the tenth time.
On October 16, local time, the U.S. Senate again failed to advance the Republican Provisional Allocation Act with a vote of 51 against 45. It is that the Republican Party needed 60 votes to advance the bill that would fund the government until the end of November.
The tenth time the U.S. Senate voted on the provisional allocation bill has not yet been passed, with the U.S. government’s “stop” starting on 1st of this month moving into its 17th day.
According to U.S. media estimates, this will give rise to a new “historical record” in the 16 days of the U.S. government’s “stop” with various consequences caused by the government’s “stop”, including the delay in releasing key economic data, damaging the economy and even weakening the dollar’s position.
At the same time, both Republican and Democratic parties continue to fight fiercely.
Trade tensions between China and the United States have intensified significantly recently, exacerbating fluctuations on Wall Street.
Last week, US President Trump threatened to impose an additional 100% tariff on all Chinese goods exported to the United States in response to China's new export controls on rare earth minerals. In the following days, Trump's trade rhetoric eased, but the tension deteriorated again on Tuesday, and Trump threatened to impose a ban on edible oil trade on China.
On the geopolitical front, German Defense Minister Boris Pistorius said at the "Ukraine Defense Liaison Organization" meeting on the 15th that Germany will provide Ukraine with a value of more than 2 billion euros (about 2.33 billion US dollars) in military assistance, including air defense systems, precision-guided weapons and ammunition.
Pistorius said that Germany will provide about $500 million in military assistance to Ukraine under the "Ukraine Priority Needs List" assistance mechanism proposed by the United States and NATO. In addition, Germany will separately provide "two sets of infrared imaging successor missile systems (IRIS-T), equipped with a large number of guided missiles and shoulder-fired air defense missiles." Anti-tank weapons, small arms, security communication systems, etc. are also expected to be delivered.
At the International Defense Industry Forum in October, Britain and Uzbekistan signed a large-scale cooperation agreement to jointly produce artillery systems and launched the "LYRA Plan" to introduce British military technology to help Uzbekistan independently produce L119 howitzers, M777 howitzers and other weapons, reducing Uzbekistan's dependence on external supplies.
Regarding Western countries providing military assistance to Ukraine, Russian Foreign Minister Lavrov has repeatedly warned that all weapons shipped to Ukraine will become legal targets of Russian troops. Russia emphasized that the West's supply of weapons to Ukraine will not help the success of Russia-Ukraine negotiations and will also have negative effects.
US President Donald Trump said he would meet with Russian President Vladimir Putin again and try to end the Russia-Ukraine conflict. The specific date of the meeting has not yet been determined.
Trump and Putin agreed in a two-hour call on Thursday to hold the meeting in Budapest.The two met in Alaska in August but failed to make a breakthrough.
Affected by international trade concerns, the continued shutdown of the U.S. government, increased uncertainty in the situation in Russia and Ukraine, and Federal Reserve Chairman Powell once again hinted that interest rates will continue. International gold prices continue to hit record highs. Yesterday, New York gold futures closed at US$4,344.30 per ounce, up 2.83%; London spot gold prices closed at US$4,328.28 per ounce, up 2.87%.
The Shanghai futures exchange gold futures 2512 contract price night plate closed at 981.9 yuan / gram; the Shanghai gold exchange gold cash AU9999 price night plate closed at 980.00 yuan / gram.
The dollar continued to fall on Thursday. The RMB exchange rate continued to appreciate, with the offshore RMB appreciating by 50 basis points to close at 7.1246.
Technically, New York gold futures prices have continuously set new highs. After repeatedly fluctuating around US$4000/ounce, they once again broke through the important level of US$4000/ounce and rose. Although technical indicators such as MACD and KDJ have overbought adjustment pressure in the short term, the current short-term trend is still in the midst of a shock rise. Judging from the overall large-cycle K-line combination, as long as the price does not effectively fall below US$3600/ounce, it is still in a general trend of volatile upward growth. In terms of the overall shape, gold is still in a large upward cycle.
To sum up, recent international trade concerns, the continued shutdown of the U.S. government, increased uncertainty in the situation in Russia and Ukraine, and Federal Reserve Chairman Powell once again hinted that interest rates will continue. International gold prices continue to hit record highs. Technically, New York gold futures prices have continuously set new highs. After repeatedly fluctuating around US$4000/ounce, they once again broke through the important level of US$4000/ounce and rose. Although technical indicators such as MACD and KDJ have overbought adjustment pressure in the short term, the current short-term trend is still in the midst of a shock rise. Judging from the overall large-cycle K-line combination, as long as the price does not effectively fall below US$3600/ounce, the price of gold is still in a general trend of shock and rise. In terms of the overall shape, gold is still in a large rising cycle.
Beijing time, October 17 (Friday)
00:20 G20 Finance Ministers and Central Bank Governors Press Conference
17:30 Eurozone September Harmonized CPI Annual Rate;
20:30 U.S. New houses in September start annual monthly rate.