In the Asian session on Wednesday, the DOLLAR index was little changed at around 93.50. Spot gold was trading slightly lower, near $1,927 an ounce, after a V-shaped reversal on Tuesday, and analysts said the drop could provide opportunities to buy bargains at a time when geopolitical tensions remain high. On the other side of the news, Australian media have recalled their journalists from China. According to Chinese state media, Australian intelligence agents have previously raided the homes of Chinese journalists, which may add to the uncertainty of China-Australia relations. On the situation between China and India, According to Indian media, the two countries are currently using a diplomatic hotline to ease tensions.
Gold prices fluctuated sharply on Tuesday, rebounding strongly from near two-week lows hit earlier, as tumbling stocks prompted investors to seek safety. Spot gold closed at $1,931.20 an ounce, up $2.38, or 0.12 percent, after touching an intraday low of $1,906.24 an ounce. Phillip Streible, chief market strategist at Blue Line Futures in Chicago, said, “Gold rebounded from its lows after a sharp fall in U.S. equities triggered safe-haven buying.”
Many analysts believe the fall will be a buying opportunity. “I hope the gold price keeps going down so I can buy more gold,” said Bill Baruch, President of Blue Line Futures.
Bart Melek, head of commodity strategy at TD Securities in New York, said that while the dollar has room to rise, strong fundamentals will continue to support gold. He added that he expected gold to continue to hold support at $1,920.
George Gero, managing director of Wealth Management at Royal Bank of Canada, said he remains bullish on gold in the near term as increased market uncertainty could push prices higher in line with the dollar.
Gold has risen more than 27% this year as central Banks around the world have built ona raft of unconventional stimulus measures to offset the economic damage caused by the novel Coronavirus pandemic. Gold is considered a hedge against inflation and currency depreciation.
“All central Banks are in the same boat,” said Edward Meir, capital markets analyst at ED&F Man. They’re going to have to keep printing money and keep easing policy to counter the recession we’re in, “which would provide support for gold.
Julius Baer analyst Carsten Menke said gold was supported by prolonged market uncertainty. Menke said a lot of recession fears have been priced into the gold price and investors are waiting for more to come, so the gold market will be on the sidelines in the near term.
Foreign Ministers of China and India will ease tensions through the diplomatic hotline shortly before the meeting
A day after the first firing along the Line of Actual Control in 45 years, New Delhi and Beijing are using a diplomatic hotline to calm tensions ahead of a foreign ministers’ meeting, the Indian Express reported Wednesday. Indian Foreign Minister Sushma Jaishankar and Chinese Foreign Minister Wang Yi are scheduled to meet in Moscow.
The stand-off began in early May and erupted in violence on June 15, leaving 20 Indian soldiers dead and an unknown number of Chinese soldiers injured. Indian government sources confirmed on Monday that Chinese and Indian troops opened fire during a confrontation near the Line of Actual Control (LAC) on September 7, the first time shots have been fired at the border between the two countries in decades.
Diplomats in Delhi and Beijing have been in contact since Late Monday after the first shots were fired, the Indian Express has learned. Talks at the special Representative level are likely to take place in the coming days.
“India is committed to disengaging and de-escalating the situation on the LINE of Actual Control, while China continues to take provocative actions to escalate the situation,” the Indian military said in a statement released on Tuesday.
In a statement, the Indian military said it had not crossed the LINE of Actual Control at any time and had not used any offensive means including firing. Instead, the Indian military statement said, “it is the FLAGrant violation of the agreement and aggressive actions of the PLA at the same time that military, diplomatic and political contacts are still going on.”
China and India signed an agreement in 1975 that neither side was allowed to use arms, so for more than 40 years neither country has fired a single shot at the other. The Hindu newspaper said The shooting on September 7 was The first border incident since 1975.
Regarding the incident on 7 September, the Indian military said: “It was the PLA that was trying to approach a forward position along the LINE of Actual Control (LAC) and when dissuaded by its own forces, the PLA fired several shots into the air in an attempt to intimidate its own forces.” The Indian military also said that “despite serious provocations, our forces have exercised great restraint and displayed a mature and responsible attitude.” The Indian military statement noted that the Indian army is committed to maintaining peace and tranquility, but is also determined to protect national integrity and sovereignty at all costs.
On September 7, The Indian troops illegally crossed the line into the Shenbao Mountain area on the south bank of Bangong Lake in the western section of the China-India border, according to a news report on The China Military Website on September 8, senior Colonel Zhang Shuihui, spokesman of the Western Theater Command of the Chinese People’s Liberation Army (PLA), made a statement on Indian troops illegally crossing the line again.
Senior Colonel Zhang Shuiyuan said that during the operation, the Indian army blatantly shot at the patrol officers of the Chinese border troops who had made representations before, and the Chinese border troops were forced to take measures to stabilize the situation on the ground. The Act by the Indian side seriously violates relevant agreements and agreements between China and India, aggravates regional tensions, and is highly likely to cause misunderstanding and miscalculation. It is a serious military provocation of a very bad nature.
“We demand that the Indian side immediately stop its dangerous actions, immediately withdraw its personnel from crossing the border, strictly restrain the front-line troops, seriously investigate and punish those who fired the gun as a provocation and ensure that similar incidents do not happen again,” said Senior Colonel Zhang. The troops in the theater will resolutely perform their duties and missions and resolutely safeguard China’s territorial sovereignty.”
On September 8, Chinese Foreign Ministry Spokesperson Zhao Lijian held a regular press conference. Zhao lijian said that during the incident, the Indian side first fired threatening shots at Chinese border patrol personnel, which was the first time that the calm of the border between the two countries was interrupted by gunfire since 1975. China has repeatedly stressed that the two sides should resolve their differences through peaceful means and consultation and dialogue. Confrontation is not in the interests of either side.
Chinese and Indian defense ministers met in Moscow on Friday without any positive progress, and attention is focused on whether there will be any positive developments this week when they meet in Moscow for a meeting of foreign ministers of the Shanghai Cooperation Organization.
On the sidelines of the meeting of the council of ministers of foreign affairs of the Shanghai cooperation organisation (sco) member states on September 9 and 10, Indian express reported on September 8 that Indian foreign minister sushma singh and Chinese state councilor and foreign minister wang yi may hold bilateral meetings in Moscow.
On September 7, local time, su jieseng said that the border situation between China and India and the relationship between the two countries “cannot be decoupled”, believing that the current tension between the two countries on the border may affect China-India relations. He also said the two sides needed to have a “very, very in-depth dialogue” at the political level on the current border situation.
Update on the situation between China and Australia: Australian intelligence agents have raided the residence of Chinese journalists in Australia
In the latest bloomberg report on Wednesday, Chinese state media reported that Australian intelligence officials raided the homes of Chinese journalists in Australia in late June. Tensions between the two trading partners are rising.
The global Times, citing an unnamed source familiar with the matter, said the journalists had been questioned and their computers and mobile phones seized. Xinhua ran a similar article, while China News Service said Australian police on June 26 raided the homes of four journalists from three Chinese media outlets and found they had done nothing wrong.
According to the Global Times, Australian intelligence agents recently raided the homes of Chinese media journalists in Australia, questioned them for a long time, forcibly seized their computers and mobile phones, and ordered them not to report on the search.
A bloomberg request to Australia’s Department of Foreign Affairs and Trade for comment on the report was not immediately returned.
Australian security and intelligence agencies raided the home and office of a Sydney lawmaker on June 26, bloomberg reported, the same day Chinese media outlets were said to have been raided. The NSW LAWMAKER Shaoquett Moselmane later said the investigation involved people suspected of advancing Chinese government goals, and he denied being the suspect.
For nearly 50 years, Australian media have been present in mainland China without interruption. Shortly after the normalisation of relations between China and Australia in December 1972, Australian media began to appear on the Chinese mainland. The situation came to an abrupt and dramatic end on Tuesday when the last two journalists working for the Australian media fled the mainland fearing for their safety.
The sudden departure of Australian journalists Bill Birtles and Michael Smith, following days of diplomatic confrontation between the two governments, marked a new low in Sino-Australian relations, closing one of the dwindling channels of contact and understanding between the two countries.
Mr. Bertus and Mr. Smith are reporters for ABC and the Australian Financial Review, respectively. The two men arrived in Sydney on Tuesday after Australian diplomats negotiated to ensure they left China following their involvement in a national security investigation.
A week before they left China, Beijing confirmed the detention of The Australian host, Cheng Lei, and put further pressure on bilateral relations, which are already in freefall over trade disputes, the COVID-19 epidemic, alleged espionage and issues over Hong Kong and the South China Sea.
Zhao Lijian, a foreign ministry spokesman, said on Tuesday that Cheng was suspected of “criminal activities endangering national security”, the first time the Chinese government has commented in detail on the incident. He added that the questioning of Burts and Smith was in accordance with normal law enforcement procedures and that authorities were acting in strict accordance with the law.
ABC News Center Director Gaven Morris said in a statement about the withdrawal of the correspondent that the Station is an important part of ABC’s international news coverage and is committed to returning to China.
“The news that happens in China, china-Australia relations and China’s role in the Asia-Pacific region and the world are of great importance to all Australians, and we hope to continue to have our reporters on the ground,” the statement said.
Australia’s foreign minister, Marise Payne, also issued a statement on the matter, saying her government had provided consular assistance to the two Australian journalists in China to help them return home.