Will Trump do something new today? Beware of escalating Tensions between China and the US! Gold just shot up short! Breakthrough 1940 dollars

In the Asian session on Thursday, the DOLLAR index continued to come under pressure, now trading around 93.30. Spot gold short – term surge, the latest gold price above $1940 an ounce. As investors remain focused on u.s.-China relations, the State Department plans to announce as early as Thursday that Confucius Institutes in the United States will be required to register as “foreign missions,” according to new media reports, a move that could further exacerbate tensions between the two countries. Media reports that Taiwan is in discussions with the United States to buy mines to deter amphibious landings and cruise missiles for coastal defense are also likely to anger Beijing.

Gold also extended Wednesday’s rally. Gold prices rose on Wednesday as gloomy economic data highlighted fears of a pandemic-triggered slowdown. Spot gold closed Wednesday at $1,915.71 an ounce, edging up $4.17, or 0.22 percent, after closing up 5.7 percent, or more than $115 in the previous session, its biggest one-day drop since June 2013.

Phillip Streible, chief market strategist at Blue Line Futures, said, “A fall is a healthy correction, it brings more people in, so prices will bounce back again and we will see a new all-time high by the end of the year, with gold rising to $2,500. The fundamentals underpinning gold are the same and the Fed will remain dovish for a long time. They have said they will allow inflation to exceed their target.”

Massive stimulus measures tend to support gold, which is often seen as a hedge against inflation.

Gold will confirm its continued bullish bias and hit its bullish target after breaching $1,934.68 an ounce, according to Economies.com. The first bullish target for gold is $1967.90 / oz and a higher target is $2008.80 / oz.

Unless gold falls below $1,860.90 an ounce and stays below that level, Economies.com says it will continue to predict a bullish trend in the coming trading sessions.

In the longer term, most analysts see room for gold prices to rise further. Most of the main drivers of gold’s rise remain in place, including heavy central-bank money printing, low interest rates, rising geopolitical tensions and the looming US election.

James Steel, chief precious metals analyst at HSBC, said in a note: “The global economy continues to face a range of issues that are capable of supporting gold prices. This includes geopolitical risk and continued monetary and fiscal stimulus.”

Gold could go even higher, said Michael Cuggino, chief executive of the Permanent Portfolio Fund. In an interview, he said it was “not unreasonable” for gold to break through $4,000 an ounce. Gold could extend its gains as money is pumped into the U.S. economy, the dollar weakens and investors worry that inflation could return.

E.B. Tucker, director of Metalla Royalty and Streaming, sees gold continuing to rise to $2,500 an ounce by the end of the year. The current bull run is not out of control and gold will continue to advance at a steady pace. Tucker correctly predicted that gold would hit the $2,000 mark.

Edward Moya, senior market analyst at broker OANDA, said gold could rise to $2,300 by the end of the year.

“Despite the possibility of a short-term pullback, the medium – to long-term outlook for gold and other precious metals remains bullish amid a low interest rate environment and fiscal and monetary stimulus,” said Margaret Yang, strategist at DailyFx.

“The novel Coronavirus will not stop governments around the world from printing money anytime soon and gold will benefit from that,” said Bob Haberkorn, senior market strategist at RJO Futures. The next target price for gold is $2,090.”

Us plans to register Confucius Institutes as “foreign missions” could heighten tensions between China and the US

In the latest escalation of tensions with Beijing, the South China Morning Post reported on Thursday that the Trump administration is stepping up its scrutiny of a long-funded Chinese program dedicated to teaching Mandarin and Chinese culture in the US and other countries.

The US State Department plans to announce as early as Thursday that Confucius Institutes in the US, many of which are located on university campuses, will need to register as “foreign missions”, according to people familiar with the matter who spoke on condition of anonymity. The designation means Confucius Institutes are “substantially owned or effectively controlled” by foreign governments. This will subject them to administrative requirements similar to those of embassies and consulates.

The State Department did not immediately respond to requests for comment, following similar actions earlier this year against several Chinese media outlets.

The colleges have long been a target of Chinese hawks, with lawmakers, including Sen. Marco Rubio (R., Fla.), urging schools in that state to end their agreements. Rubio called the programs “Chinese government-run programs that use the teaching of Chinese language and culture as a tool to expand the government’s political influence.”

The move is likely to further heighten tensions with Beijing at a time when the two countries are at odds over issues ranging from governance in Hong Kong to 5G technology.

This week, U.S. Secretary of State Michael Pompeo used a speech in Prague to blast the Chinese Communist Party’s “coercion and control movement.”

U.S. Secretary of State Mike Pompeo said Wednesday during a visit to the Czech Republic that China’s global economic might makes it in some ways a more formidable enemy than the Soviet Union during the Cold War. Pompeo called for European nations to unite against the Chinese Communist Party, which he said USES its economic power to exert influence around the world.

“What is happening now is not Cold War 2.0,” Pompeo said in a speech to the Czech Senate. “In some ways, the challenge of defending against the communist threat is much more difficult. The Chinese Communist Party is integrated into our economy, politics and society in a way that the Soviet Union never was.”

According to the National Association Of Scholars, a nonpartisan research organization that studies Confucius Institutes, 80 Of the world’s roughly 550 Confucius Institutes are located at American universities, including Stanford University and Savannah State University in Georgia.

While the schools have generally steered clear of history, politics and current events, critics say they are tools of China’s influence on campuses, with the government in Beijing gaining influence over censorship of teaching materials and academic activities by threatening to withdraw funding from the institutions.

The National Association of Scholars opposes the schools, arguing that their funding lacks transparency and that sensitive topics for the Chinese government are off-limits to discussion.

Relations have soured rapidly this year over a series of issues, including China’s handling of novel Coronavirus, telecom equipment maker Huawei, China’s territorial claims in the South China Sea and the rollout of Hong Kong’s National Security law.

On August 7 local time, the US Treasury Department issued a statement, announcing that the United States will impose sanctions on 11 Chinese officials, including Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor. “The United States stands with the people of Hong Kong, and we will use our tools and power to fight those who undermine Hong Kong’s autonomy,” U.S. Treasury Secretary Steven Mnuchin said in a statement. The US Treasury said Mrs Lam had been sanctioned because she was “directly responsible for implementing Beijing’s policy of suppressing the freedom and democratic process” in Hong Kong.

On August 10, Chinese Foreign Ministry Spokesperson Zhao Lijian held a regular press conference. A reporter asked about the US sanctions against several officials of the Hong Kong Special Administrative Region. Zhao Lijian, said the state department and the Ministry of Finance on the grounds that the alleged damage Hong Kong’s autonomy, announced sanctions against 11 and the Hong Kong special administrative region of China’s central government, the relevant ACTS in Hong Kong affairs publicly, gross interference in China’s internal affairs, a serious violation of international law and basic principles in international relations, China is firmly opposed, strongly denounce.

He announced, in view of the us is wrong, we have decided to from now on, on the question of hong kong-related performance of bad U.S. senator rubio, cruz, Holly, cotton, rice, Congressman Smith, as well as the President of the national democratic foundation cashman, President of the national association of international affairs democracy mead wei, President of the international republican institute, crisis, human rights watch, executive chairman of Ross, freedom house executive sanctions Roman abramovich has’s race.

Taiwan says it is in talks with the United States to buy mines and cruise missiles

Separately, Taiwan’s representative to the United States, Hsiao Mei-chin, said On Wednesday that Taiwan was in discussions with the United States to buy mines to deter amphibious landings and cruise missiles for coastal defense, Reuters reported on Thursday. The news is also likely to anger Beijing.

Speaking at the Hudson Institute, Ms Hsiao said Taiwan faced an “existential problem” given China’s territorial and sovereignty claims over the island and needed to expand its asymmetric defence capabilities. “When we say asymmetric capability, we mean a capability that is cost-effective and lethal enough to form containment, making any consideration of invasion very painful,” she said.

Hsiao noted that Taipei is currently discussing with the United States the purchase of some hardware capabilities from the United States, including cruise missiles that can work with Taiwan’s domestically developed Hsiung Feng missile system to provide better coastal defense. Other weapons systems under discussion include “mines and other capabilities to deter amphibious landings or raids”.

Earlier on Wednesday, Taiwan leader Tsai Ing-wen said in an online conference that she had made expanding and accelerating the development of Taiwan’s asymmetric defense capabilities a top priority.

Ms Hsiao said Taiwan also wanted to strengthen its defences on the islands it controls in the South China Sea. Beijing claims almost the entire South China Sea as its territory. “For Taiwan, our priority for survival is to strengthen the defense of Taiwan itself, including the islands that Taiwan currently controls in the South China Sea,” she said.

Beijing’s moves are seen as increasingly threatening by Taiwan, which has been beefing up its defences. Us sources said last week that Washington was in its first talks to sell at least four advanced drones to Taiwan. China has often condemned U.S. arms sales to Taiwan.

Washington severed official ties with Taipei in 1979 in favor of Beijing, but it remains Taiwan’s largest arms supplier and is legally obligated to provide the island with means to defend itself.

The Trump administration has stressed its support for Taiwan as relations with Beijing have soured over issues such as human rights and trade.

This week, U.S. Health Secretary Alex Azar became the highest-ranking U.S. official to visit Taiwan in 40 years, a trip that was condemned by China and threatened unspecified countermeasures.

Mr. Azar wrapped up a three-day visit On Wednesday, during which he met with Taiwan leader Tsai Ing-wen. Mr Azar said his talks with Taiwanese officials involved a “bilateral trade arrangement”. “The purpose of my visit is to highlight the deep partnership and friendship between Taiwan and the Us,” Mr Azar said. He did not elaborate on the proposed trade arrangement.

Mr. Azar’s visit comes amid heightened tensions between Washington and Beijing over Issues such as Hong Kong, international trade and the growing global influence of Chinese technology companies.

Mr Azar repeatedly stressed that his trip had brought messages of support and friendship from US President Donald Trump and lashed out at China for allegedly withholding information on the coronavirus. The pandemic began in the Chinese city of Wuhan.

Joseph Wu, the head of Taiwan’s foreign affairs department, told U.S. Health Secretary Joseph Azar on Tuesday that Taiwan faces an increasingly difficult situation as China puts pressure on Taiwan to accept terms that would make it the next Hong Kong.

Leave a Reply

Your email address will not be published. Required fields are marked *