FPG : Sino-US relationship has sparked an increase in demand for gold. The upcoming release of the US Consumer Price Index (CPI) is expected to bring in new momentum for the market 1. [Germany: End of Nuclear Power Dispute as Curtain Call] On April 15, Germany finally achieved a historic goal - the elimination of nuclear energy with the closure of the last nuclear power plant. However, doubts about energy supply security have kept the nuclear energy debate alive in Germany. After bidding farewell to nuclear energy, how to handle nuclear waste remains uncertain in Germany. Comments: Germany's tortuous path to giving up nuclear power has finally come to an end. 2. [US Announces Additional $1.2 Billion in Security Assistance to Ukraine] On May 9, the US announced that it would provide $1.2 billion in military assistance to Ukraine, including air defense systems, tanks, armored vehicles, ammunition, and commercial satellite image services. The aid program is part of the "Ukraine Security Assistance Initiative," allowing the US government to purchase aid weapons from suppliers without withdrawing them from the Ministry of Defense's inventory. Comments: The United States providing more military assistance to Ukraine will only prolong the conflict and provide Western weapons to Ukraine, which is not beneficial to Russia and Ukraine. Negotiations will have a negative impact. 3. [Thai Cabinet Approves Draft Statement to Support Local Currency Transactions in ASEAN Region] The cabinet meeting approved the draft statement of ASEAN leaders on promoting the interconnection of regional payment systems and local currency transactions. During the 42nd ASEAN Summit in Indonesia, ASEAN leaders will adopt the draft statement on May 11. The draft statement focuses on the goal of ASEAN economic integration, which will help promote economic growth and stable financial transactions in the ASEAN region, protecting it from external fluctuations. Comments: The main points of the draft include promoting the connectivity of payment systems in the region, focusing on the use of innovative technologies to support seamless and secure cross-border payments, improving infrastructure to promote the operability of cross-border payment systems, promoting electronic payments, and local currency transactions. 4. Russia commemorated the 78th anniversary of the victory of the Patriotic War with a military parade in Red Square. Russian President Putin and guests watched the parade from the central examination platform, while Russian Defense Minister Shoigu and Oreg Salyukov, the commander-in-chief of the Army of the Armed Forces of the Russian Federation, inspected the teams by car. The parade involved over 8,000 soldiers and more than 100 pieces of modern weapons and military equipment, including tanks, armored vehicles, missile systems, and more. In his speech, Putin emphasized the sacredness of the memory of the defenders of the motherland for the Russians and paid tribute to the countries that fought against Nazism, as well as to the Allied soldiers of the United States, Britain, and other countries. He also remembered the bravery of Chinese soldiers in fighting against Japanese militarism. 5. Foreign media reports indicate that the armed conflict in Kasmu, the capital of Sudan, is still ongoing as of the 8th local time, with no significant progress made in ceasefire talks between the two sides of the conflict in Saudi Arabia. On the 8th, there were numerous air strikes in Qashmu, and both the Sudanese armed forces and the rapid support forces on both sides of the conflict intensified. The conflict has resulted in the deaths of over 750 people and injured more than 5,000. According to statistics from the United Nations High Commissioner for Refugees, more than 10,000 people have crossed the border from Sudan to South Sudan since the outbreak of the conflict. 6. The Australian government will allocate 14.6 billion Australian dollars in the next four years to improve people's livelihood, according to a report by the Australian Broadcasting Corporation on the 9th. The budget for the 2023 fiscal year, released that night, aims to mitigate inflation and improve people's livelihood. The budget is expected to reduce the pressure caused by rising prices and will not increase broader pressure in the economic field. FPG special analyst King believes that the rise of the US dollar index DXY has capped the rise of gold due to its negative correlation with the precious metal. The increase in short-term Treasury bond yields also added pressure on gold. FPG special analyst Dawson Daosheng reports that there was no progress made in the discussion of the US debt ceiling during Biden's meeting with congressional leaders. The New York Federal Reserve has not made any clear indication about the end of interest rate hikes, and any decision on this matter will depend on data. Dave, another FPG special analyst, notes that gold prices rose slightly due to investors seeking to avoid economic uncertainty, including the US debt ceiling deadlock, and preparing for US inflation data. The decline of the US dollar, banking issues, and concerns over the weakening US economy are also factors driving the rise of gold prices. FPG special analyst Yue Lin emphasizes the market's expectation of interest rate hikes in June and how higher-than-expected CPI data may strengthen the Federal Reserve's resolve to increase interest rates. However, if the data is far lower than expected, it may lead to a large influx of funds into the commodity market and further clearance of the US dollar index. The above analysis is only for the views of market researchers and is for reference only and is not Regarded as a specific investment suggestion. #Forex #trading #tradingforex