China Launches First Offshore Gold Vault in Hong Kong to Expand Global Yuan Use and Challenge Dollar Dominance

Economic

Summary:

China’s Shanghai Gold Exchange (SGE) has opened its first offshore bullion vault in Hong Kong and introduced two new yuan-denominated contracts...

Strategic Expansion Aims to Globalize China’s Gold Market

In a landmark development, the Shanghai Gold Exchange has extended its footprint beyond mainland China by launching its first offshore gold vault in Hong Kong, alongside the debut of two new yuan-settled gold contracts. The vault, operated by the Hong Kong unit of Bank of China Ltd., is part of a broader push to internationalize China’s financial infrastructure and amplify the use of the yuan in global commodities markets.

Trading under the new contracts begins this Thursday, and participants can choose between cash settlement or physical delivery at the Hong Kong vault. To incentivize market participation, the exchange has waived all vault-related fees through the end of 2025.

Reinforcing Yuan’s Global Role and China’s Commodity Ambitions

As the world’s largest producer and consumer of gold, China has long sought a greater voice in gold pricing—traditionally dominated by U.S. dollar-denominated contracts on platforms such as COMEX and the London Bullion Market. The introduction of offshore yuan-settled gold trading is a strategic tool in Beijing’s broader de-dollarization campaign.

Doris Bao, founder of Gold Harvest Consulting and an advisor to the London Bullion Market Association, emphasized that the move allows China to import gold using yuan rather than dollars, enhancing liquidity in offshore yuan markets and creating a parallel channel for international bullion trade. "This marks a pivotal step in China's efforts to anchor global commodity pricing to the yuan," she said.

Hong Kong as the Gateway to China’s Gold and Finance Ecosystem

Positioning the vault in Hong Kong serves multiple purposes. As a global banking hub with strong regulatory ties and established financial infrastructure, Hong Kong offers a bridge between international investors and China’s gold market. It also aligns with the city’s strategic ambitions to evolve into a regional commodities powerhouse, complementing other initiatives across logistics, warehousing, and financial trading.

Joshua Rotbart, managing partner at J. Rotbart & Co., noted that while the new facility increases accessibility and confidence for international players, questions around regulatory openness and cross-border transparency still linger. “To truly compete with London and New York, the exchange must ensure global investors can operate with the same ease and legal protections,” he remarked.

Broader Context: Gold’s Resurgence and China's Reserve Strategy

The timing of the offshore expansion coincides with a historic rally in gold prices, which have more than doubled since 2020. With COMEX gold futures currently trading near $3,357 per ounce, investor demand for bullion as a safe-haven asset remains robust.

China’s central bank has been one of the largest institutional gold buyers in recent years. The strategic accumulation of gold reserves aligns with efforts to diversify away from U.S. dollar exposure, especially amid rising geopolitical and financial fragmentation. Gold now plays a central role in Beijing’s reserve diversification policy, and expanding yuan-based infrastructure around gold enhances this monetary insulation.

Building a Global Gold Ecosystem on Chinese Terms

The SGE’s offshore move underscores China’s long-term ambition to build a parallel global financial system where the yuan plays a dominant role—not just in settlement, but also in commodity pricing and capital flows. While London remains the epicenter of global gold trade, the opening of a yuan-denominated offshore vault in Hong Kong marks the beginning of a potential shift in power dynamics.

As participation grows and regulatory hurdles are addressed, China’s offshore gold infrastructure could become a critical lever in reshaping how commodities are traded and settled in a multipolar financial world.

Source: Bloomberg

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Olivia Brooks

Cryptocurrency

Bitcoin's price soared to $108.2K as traders abandoned fear-driven lows and rushed into $120K+ breakout speculation.

Social volume data shows how quickly sentiment flipped from war-driven panic to euphoric calls for new Bitcoin highs.

June 25 marked a powerful shift in crowd behavior, with high-volume chatter focused on $120K–$160K Bitcoin price targets.

Bitcoin surged to $108.2K after news of a ceasefire between Israel and Iran sent widespread optimism in the market, fueling the price rally as traders emotionally responded to macro triggers in a switch from fear to instant euphoria.

Sentiment Shift Drives Breakout Momentum

The market's general sentiment is still firmly bullish, with BTC breaking above $108K after a week of consolidation. Speculative gossip soon reversed from collapse chatter to manic targets for the upside, reflective of extreme emotional responses to global news. This move is one of the most volatile reversals in trader sentiment this month.

According to data shared by Santiment, low-end Bitcoin price mentions ($30K–$70K) spiked heavily on June 22. This reaction reflected traders' anxiety as war tensions escalated, prompting talk of deep price retracements. The sharp rise in bearish sentiment dominated conversations and dragged social dominance down.

The panic was short-lived. By June 25, conversations had flipped entirely toward bullish targets ranging between $120K and $160K. In a post by Santiment, the data showed massive engagement around high-end price calls, indicating a dramatic change in trader outlook.

Optimism Grows as Ceasefire Holds Firm

As ceasefire reports circulated globally, the Bitcoin market rallied sharply. Traders responded by ditching bearish targets and fueling speculation of a run toward $120K. The crowd's mindset, previously defensive, turned aggressively bullish with remarkable speed.

The shift wasn’t just in price targets-it showed up in the dominance line too. When bearish calls peaked, social dominance dipped. But when optimism returned, that line climbed again, mirroring a sudden surge in speculative confidence.

June 25 recorded the most significant spike in $120K+ call volume since early June. According to a report by Santiment, traders weren’t just betting on a recovery-they were anticipating new highs. This dramatic switch revealed how external events can instantly alter crypto investor psychology.

Social Metrics Reflect Fear and Greed Cycles

Social volumes across both bearish and bullish spectrums mirrored intense emotional cycles among market participants. Traders reacted instantly to war-related news, swinging between fear of collapse and dreams of breakout highs.

As bearish sentiment dropped post-June 23, bullish calls began dominating social platforms. The reaction was not just speculative-it fueled trading behavior. The $108K level became the focal point of renewed conviction and crowd-driven speculation. Bitcoin remains hyper-sensitive to macro events, as seen in this recent sentiment whiplash. The data confirms that fear and greed continue to rule market behavior in high-stakes environments.

The post Bitcoin Hits $108.2K After $120K+ Price Speculation Dominates Social Buzz appears on Coin Futura. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.

Source: CryptoSlate

Risk Warnings and Disclaimers

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Michelle

Political

The People's Liberation Army "shows zero tolerance to Taiwan independence separatist activities", a Chinese defence ministry spokesperson said on Thursday when asked about recent speeches made by Taiwan's President Lai Ching-te.

The PLA will enhance combat readiness to firmly safeguard national sovereignty and territorial integrity, spokesperson Zhang Xiaogang told a regular press conference.

"The Lai authorities keep pushing Taiwan into a dangerous situation of war; they are the cause of harming the livelihood of the Taiwanese people," Zhang said, adding that Lai's comments showed his "ill intentions".

Lai on Sunday began a series of 10 speeches on "uniting the country", saying that democratically-ruled Taiwan was "of course a country" and that China had no legal or historical right to claim it.

Beijing and Taipei have clashed over their competing interpretations of history in an escalating war of words over what Beijing views as provocations from Taiwan's government, saying it was impossible to "invade" what was already Chinese land.

Beijing has never renounced the use of force to bring the island under its control and has a particular dislike for Lai, describing him as a "separatist". Taiwan strongly objects to China's sovereignty claims and says it is up to the island's people to decide their future.

Tensions between China and Taiwan, including several rounds of Chinese war games, have grown over the last five years and now include daily air and naval deployments near the island.

The last Chinese war games in April and October were widely seen by regional military attaches as a test of a possible blockade of Taiwan.

The U.S. and its regional allies are watching closely, with some officials saying that China's deployments and its military modernisation have raised the possibility Beijing may one day make good on its threats to take Taiwan by force.

Source: Reuters

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Gerik

Economic

Commodity

Tight Ex-U.S. Supply Drives Copper Toward August High

Copper continued its bullish run, rising 0.6% to $9,767.50 per ton on the London Metal Exchange (LME) early Thursday, extending a five-day rally. Goldman Sachs now forecasts that copper will hit its annual high of around $10,050 per ton in August, driven primarily by tightening inventories outside the United States and aggressive forward-buying behavior in the American market.

Despite a headline global surplus, the distribution of copper stocks has become geographically skewed. Goldman’s analysts, including Eoin Dinsmore, pointed to a squeeze in the ex-U.S. market where traders are witnessing shrinking availability. Spot contracts on the LME have surged in premium to next-day futures, with the tom/next spread jumping to $40 per ton, a sign of acute short-term demand pressure.

Tariff Speculation and Regional Divergence

The divergence in regional supply conditions stems from an anticipated 25% U.S. tariff on imported copper set for implementation by September. In preparation, traders and manufacturers have frontloaded copper imports into the U.S., depleting inventory from other global hubs. This dynamic has triggered spot market stress in Europe and Asia, amplifying volatility even as global mine output remains broadly stable.

Goldman anticipates copper to begin easing later in the year once the tariff is implemented and buying stabilizes. They project the metal could settle at around $9,700 per ton by December, reflecting a modest correction from the expected August peak.

Resilient Chinese Demand Bolsters Market Confidence

Chinese manufacturing sentiment and copper consumption remain unexpectedly strong, according to Goldman’s report. While Beijing has yet to roll out aggressive stimulus, indicators suggest industrial activity has not contracted significantly. This has helped underpin demand in the world’s largest copper-consuming nation, limiting the downside risk for prices despite broader macro uncertainty.

Zinc mirrored copper’s strength, gaining as much as 1.1% to reach $2,735 per ton — its highest level in a month — amid firming industrial inputs demand. Iron ore futures also advanced, with Singapore contracts up 0.6% to $93.30 per ton. In China, iron ore contracts in Dalian rose, though steel futures were largely unchanged in Shanghai, suggesting stabilized expectations for short-term construction demand.

Copper’s latest rally is a function of both physical market tightness and speculative positioning, especially in the face of trade policy uncertainty. Goldman Sachs’ outlook highlights the unusual situation of a global surplus coinciding with regional shortages and extreme short-term premiums. While prices may continue climbing through August, market participants should brace for a potential rebalancing in the final quarter of 2025 as U.S. tariffs crystallize and inventory redistribution normalizes.

Source: Bloomberg

To stay updated on all economic events of today, please check out our Economic calendar

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Glendon

Political

Hungarian Prime Minister Viktor Orbán is leading an effort to ensure Ukraine, which is currently at war with Russia, does not join the European Union due to the high potential for a conflict that could spread to all of Europe.

In this regard, he is now confronting Ukrainian President Volodymyr Zelensky directly on X on the issue.

“President (Zelensky), with all due respect: the European Union was founded to bring peace and prosperity to its member states. Accepting a country that is at war with Russia would immediately drag the EU into a direct conflict. It is unfair to expect any member state to take this risk,” wrote Orbán.

Orbán had responded to a post from Zelensky, in which the Ukrainian leader thanked EU leadership after a meeting, stating that they discussed, among other things, Ukraine’s ascension into the EU.

Citing his meeting with EU commission President Ursula von der Leyen, NATO Secretary General Mark Rutte, and European Council President António Costa, Zelensky called out Hungary.

“It is important that the leaders of the member states reach a common decision to open the first negotiation cluster. It is unfair when a single party blocks the Union’s decision. We also discussed in detail additional sanctions against the Russian Federation and the preparation of the EU’s 18th sanctions package.

This package must significantly increase pressure on Russia’s energy and banking sectors, as well as on the shadow fleet.

The key element here must be a strong price cap on Russian oil, and we count on the appropriate decisions. I thank the leaders for their support. Every step of assistance means lives saved,” he wrote.

Zelensky desires an accelerated process to gain EU membership, despite his country being the most corrupt country in Europe — a finding noted even before the war.

The rebuilding of Ukraine is expected to cost hundreds of billions of euros.

Currently, the country has no democracy or free press, as all elections have been suspended during the war.

Perhaps of greatest concern is that even if Ukraine is admitted to the EU during a ceasefire, hostilities could start again, which could drag Europe further into a new war.

Source: Zero Hedge

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Gerik

Middle East Situation

Ceasefire Opens Diplomatic Channel Amid Lingering Tensions

President Donald Trump declared that the United States and Iran will meet next week to explore a potential diplomatic agreement, though he questioned whether a formal deal is necessary. Speaking at the NATO summit in The Hague, Trump claimed U.S. strikes on Iran’s Natanz, Isfahan, and Fordow nuclear sites had effectively neutralized key components of the country’s atomic program. He stated, “We may sign an agreement. I don’t know, to me, I don’t think it’s that necessary.”

These comments came just two days after a ceasefire ended 12 days of hostilities between Israel and Iran. The U.S.-led air campaign, launched on June 13, was intended to degrade Tehran’s nuclear capabilities and military command infrastructure. In its aftermath, financial markets stabilized and oil prices fell by 13% in two days, indicating diminished war risk premiums.

Diplomacy Likely to Be Complex Despite Ceasefire

Iran, for its part, has expressed interest in returning to talks. Its mission to the United Nations stated, “The logic of war has failed — return to the logic of diplomacy,” though no formal response has been issued regarding the upcoming meeting. Prior to the outbreak of conflict, Trump’s envoy Steve Witkoff had led five rounds of nuclear negotiations with Iranian Foreign Minister Abbas Araghchi, aiming to establish a new deal after Trump withdrew from the 2015 Joint Comprehensive Plan of Action during his first term.

Talks had reportedly reached agreement on broad principles, including limitations on uranium enrichment, before being disrupted by the military escalation. Witkoff has since stated that the U.S. is still engaged in backchannel communication and sees “signs” that Tehran is prepared to reengage. “We are hopeful,” he told CNBC.

Yet former Iranian negotiator Seyed Hossein Mousavian cautioned that trust has been severely eroded. “Negotiations will be extremely difficult,” he said, citing the disruption of near-final agreements due to the coordinated Israeli-American attack.

Nuclear Oversight in Question as IAEA Access Remains Blocked

The International Atomic Energy Agency (IAEA) has urged Iran to resume nuclear inspections. However, Iran’s parliament passed legislation to suspend cooperation with the agency until further notice, deepening uncertainty over the current status of enriched uranium stockpiles. IAEA officials say uranium enriched to 60%—a level close to weapons-grade—was last verified shortly before the airstrikes, and its current location is unknown.

Trump claimed new intelligence confirmed that atomic materials remain buried in destroyed sites, saying “we’ve also spoken to people who’ve seen the site.” The White House has not disclosed who these sources are.

Iran acknowledged for the first time that its nuclear infrastructure was “badly damaged,” according to a foreign ministry statement on Al Jazeera, though specifics remain limited. The Israeli Nuclear Authority further stated that the Fordow facility was rendered inoperable and Iran’s nuclear timeline pushed back “many years.”

Military and Economic Costs Surface Amid Political Calculus

The human and financial toll of the conflict is now clearer. Iranian state media reports over 627 deaths and more than 4,800 injuries from Israeli strikes, while 28 people were killed in Israel, mostly from Iranian missile attacks. According to Bank of Israel Governor Amir Yaron, the conflict cost Israel roughly 1% of GDP—about $6 billion—and will require a revised national budget.

Despite this, financial indicators suggest renewed investor confidence. The shekel has become the world’s top-performing currency this week, rising 2.5% against the dollar. Yaron said markets are “pricing in a positive outcome” from the conflict, assuming military goals have been met and a return to political stability is on the horizon.

Sanctions, Oil, and Strategic Ambiguity Continue

Trump’s comments on sanctions were ambiguous. While insisting that “maximum pressure” on Iran remains in place, he acknowledged the difficulty in stopping countries like China from purchasing Iranian oil. “If they’re going to sell oil, they’re going to sell oil,” he said, casting doubt on the effectiveness of financial restrictions without coordinated global enforcement.

Airports in eastern Iran have begun reopening, but those in Tehran remain shut, illustrating the lingering effects of the air campaign. Trump concluded that both nations are “tired, exhausted,” and content with a pause, if not peace. “They were both satisfied to go home and get out,” he said.

Although a temporary calm has returned to the Middle East following extensive military operations, the road ahead for U.S.-Iran diplomacy remains uncertain. With mutual mistrust deepened and nuclear oversight disrupted, any potential agreement will likely face significant hurdles. Still, the upcoming dialogue offers a narrow opportunity to reset strategic relations—provided both sides are prepared to move beyond battlefield calculations.

Source: Reuters

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Gerik

Economic

Partial Recovery Follows Market Shock

Worldline, a leading French payments company, saw its stock partially rebound in early Thursday trading after a sharp 38 percent drop on Wednesday erased approximately €500 million ($585 million) from its market capitalization. The dramatic sell-off followed the release of a joint investigation by 21 European media outlets, which alleged that Worldline’s German subsidiary, Payone, continued servicing banned merchants despite regulatory directives from BaFin, Germany’s financial watchdog.

On Thursday, Worldline shares rose as much as 12.1 percent before trading was temporarily halted on Euronext Paris, reflecting high volatility as investors responded to both the allegations and the company’s swift public defense.

Allegations Raise Red Flags Over Compliance Failures

The media report claimed that Worldline maintained business ties with merchants BaFin had explicitly prohibited due to concerns over money laundering and fraud. BaFin’s initial restrictions, imposed in 2023, were aimed at cracking down on financial misconduct across payment platforms. The revelation that Payone may have disregarded these regulatory constraints triggered immediate concern about Worldline’s risk management framework and governance practices.

Such allegations, even if not yet legally substantiated, often prompt investor flight due to fears of fines, reputational damage, or further regulatory scrutiny. The market’s strong reaction underscores how sensitive fintech firms are to any perceived compliance lapses, especially in sectors like payments that are under growing global regulatory oversight.

Worldline Responds with Assurances on Risk Controls

In a statement issued after the report’s publication, Worldline acknowledged the concerns but firmly asserted that since 2023 it had reinforced merchant risk protocols and ended relationships with non-compliant clients. The company emphasized that it has improved monitoring and compliance mechanisms to align with regulatory expectations and mitigate future violations.

Although no formal enforcement action has been announced yet by BaFin or other EU authorities following the latest disclosures, Worldline's stock performance reflects investor uncertainty about the potential legal and financial repercussions of the ongoing scrutiny.

Historical Context: Recurrence of Market Volatility

This is not the first time Worldline has suffered a major valuation setback. Wednesday's drop marked its second-worst single-day decline since October 2023, a period that also involved investor concerns over the company’s exposure to macroeconomic pressure and rising competition in the European payments landscape.

The recurrence of double-digit stock swings within two years raises questions about Worldline’s overall resilience and ability to maintain investor confidence in periods of reputational challenge.

While Thursday’s rebound signals a tentative return of investor confidence, Worldline’s longer-term market trajectory will hinge on the outcomes of any regulatory investigations and the company’s ability to demonstrate concrete compliance improvements. Investors are likely to remain cautious until further transparency is provided and supervisory authorities confirm no further punitive action will be taken. In the meantime, Worldline’s rapid share price swings reveal how critical reputation and regulatory trust are to stability in the digital payments sector.