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On October 23, it was reported that the State Administration for Market Regulation has comprehensively upgraded the CCC certification implementation rules this year. The new CCC certification rules for electric bicycles, toys, and childrens vehicles will take effect on November 1. The new CCC certification rules for electric bicycles require strict adherence to the "one vehicle, one battery, one charger, one code" principle. Manufacturers must ensure that all necessary components are included with each vehicle leaving the factory. Each vehicle must be accompanied by a certificate of conformity, the contents of which must fully match the vehicle registration requirements. After the type test is completed, a complete vehicle sample must be retained for at least 12 months after the certificate expires. Post-certification follow-up inspections, on-site sampling and testing at production sites or ports, and market sampling will be implemented to effectively strengthen post-certification supervision of electric bicycles.The French trade minister has requested the United States to grant tariff exemptions for Cognac and Champagne.The Eurozones composite PMI output index preliminary reading for October was 51.9, a four-month low; the services PMI business activity index preliminary reading was 51.7, a two-month low; the manufacturing output index preliminary reading was 52.4, a four-month low; and the manufacturing PMI preliminary reading was 52.4, a three-month low.The European Central Banks 3-year CPI forecast for the Eurozone in September is 2.9%, compared to a previous reading of 2.90%.The European Central Banks 1-year CPI forecast for the Eurozone in September is 3.1%, down from the previous forecast of 3.10% and the previous reading of 3.00%.

After the dollar approached a new 20-year high, gold prices fall

Skylar Williams

Jul 12, 2022 11:20



With a second positive U.S. inflation data in two days, the dollar rocketed to a fresh 20-year high on Monday, displacing gold off its $1,700 per ounce perch.


Gold futures for August delivery on the New York Comex closed down $10.60, or 0.6%, at $1,731.70 per ounce, extending last week's fall of 3.3% — the fourth straight decline since the week ended June 10. It was also the sharpest fall since the week ended May 6.


For the first time since October 2002, the Dollar Index, which measures the U.S. currency to six other majors, surpassed 108 for the first time.


Indicators suggest that the US Consumer Price Index for June, which is expected to be released on Wednesday, will show no reduction in inflation, with analysts predicting an annual reading of 8.8 percent as opposed to 8.8 percent in May. The Federal Reserve's inflation tolerance is just 2% per year, and it has vowed to raise interest rates as much as required to achieve this objective.


Inflation ought to be advantageous for gold, given the yellow metal's long-standing reputation as a price pressure buffer and one of the greatest value stores. As a result of the dollar's surge in reaction to rate hikes, gold's "safe-haven" position has been hijacked by the dollar.


Gold is resistant to interest rate hikes. If the CPI does not decrease as quickly as predicted by the end of the year, there is a chance that the Fed may raise interest rates by 75 basis points per month for the next three months, beginning this month.


"Gold and inflation are engaged in a tug-of-war, with gold seeking to preserve its position. According to Ed Moya, an analyst at the online trading platform OANDA, Wednesday's blistering inflation data might bolster aggressive Fed rate hike forecasts for later this month and heighten anticipation for the September meeting.


"With Wall Street preoccupied on (whether) the Fed would plunge this economy into a recession, King Dollar will likely stay the trade, which is problematic for gold," Moya said.


After the CPI data and Wall Street bank signals on whether the U.S. consumer and economy are deteriorating more quickly than the majority of profit estimates imply, the Fed's expectations for its rate decision on July 27 will be cemented.


As if on cue, the New York Fed reported on Monday that more than half of the consumers it questioned this month said their household financial situation had worsened from a year ago, and almost half expect it to continue to deteriorate through 2023.

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