Gold: Update on the precious metal

Traders' Opinions

Summary:

The year started bullish until it tested the 2072 highs and now 180 degrees turn around since March has seen total consumption of the initial bulls run with possible further drop to 1545 area.

As the USD has been appreciating, we've seen the safe haven drop as expected taking out Support levels and as the directional bias for the year has been bearish, Investors are clearly expecting further shorts.

From the monthly timeframe analysis, the lower trendline of the flag pattern has now been tested with a big bearish candle. 1545 is a key flip-zone of support and resistance and judging by the volatility of the market this year, it might as well get there in this second half.

Identifying prevailing trends/waves is crucial to market analysis and the weekly shows a fresh wave down after testing the 2072 highs from year 2020. 1700 flip-zone has been hit but not showing strong buyers presence, 1780 would however be a good area for shorts to reload.

Whenever price gets to an area of interest, a trader needs further information before pulling the trigger and that's not visible from the weekly.

1732 has been hit and consolidates around the Resistance with lower highs from the 4h timeframe. If 1727 doesn't hold this week then it might as well push much higher to the next trouble area at 1780 zones.

This is also shown on the 1h perspective with good Reward in view i.e. a possible 10R and this is the major advantage of dropping to lower timeframes for entry.

Less is more should be a trader's new motto

Also note that today is the FOMC statement by 7pm UK time and possible fresh volatility is expected resulting in spread increment, whipsaws, slippage etc so ensure to implement stop loss on open positions with strict risk management.

Trade safely

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Comments

Add to Favorites

Damon

Banking firms will soon be unrestrained as they search for their next growth engines ― in non-financial sectors ― under the government's latest deregulation plan, prompting speculation over possible new businesses that they may be interested in.

Announced by the Financial Services Commission (FSC) on July 19, the plan is aimed at easing a rule that restricts banks and industrial firms from stepping into each other's industries, as a part of efforts to curb unfair business practices by conglomerates.

Under the rule, industrial businesses can own up to a 4 percent stake in a bank, and the latter can own up to a 15 percent stake in a non-financial firm.

The FSC finds the rule outdated, especially during the "big blur" era, when barriers among businesses are becoming vague due to the rapidly-evolving nature of digital technology.

Under the newly released proposals, banks are looking at IT businesses as a way to compete against big tech firms that have been capitalizing on their digital prowess to expand their presence in the banking sector.

KB Financial Group, the parent company of the nation's leading lender KB Kookmin Bank, gradually yet persistently has nurtured startups in robotics, the metaverse and other sectors that are considered necessary to rev up the digital banking environment.

The parent firm of Shinhan Bank, Shinhan Financial Group has invested in artificial intelligence (AI), prop tech and blockchain.

Prop Tech is a technology tool used for real estate so as to optimize the way people buy, sell, research, market and manage a property.

Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network.

NongHyup Financial Group had its lending arm NH NongHyup Bank form a partnership with fintech company Finger to open a metaverse platform called, Dokdo-Verse.

The platform is noted for using non-fungible tokens (NFT), a cryptographic asset on a blockchain with unique identification codes and metadata that distinguishes it from one and another.

Two other banking groups, Hana and Woori, are in consultation with relevant firms to tap into the fintech business.

"The banks will aggressively advance into IT business once the rule on separation of financial and industrial companies is eased," a commercial bank official said on condition of anonymity, noting that the lenders could not cope with tech firms amid a shift toward digital banking. How Far Will Banking Groups Advance Into New Industries as Gov't Deregulates?_1

How Far Will Banking Groups Advance Into New Industries as Gov't Deregulates?_1

The banks are also interested in virtual assets, such as cryptocurrencies, due to the growing demand from the banking sector.

The lenders are anticipated to capitalize on massive customer data as big tech firms did in order to nurture delivery and other services that can be offered through a platform.

For instance, Shinhan Bank has developed an on-demand food delivery app that offers financial benefits to its self-employed clients in the restaurant business.

It said it advanced into the on-demand food delivery service business after concluding that it has an edge over the bigger competitors in terms of lower commissions and other financial benefits.

In the long term, the bank seeks to use the app as a source of big data for the creation of relevant financial products.

Woori Bank launched a courier service in partnership with convenience store chain 7-Eleven.

Hana Bank came up with a service that allows its app users who are interested in getting a new car to compare car prices in the market.

KB Kookmin Bank partnered with Yogiyo, a food delivery platform, to enable its clients to order food using the bank's app.

NH Nonghyup Bank sells flowers on its app, in cooperation with the Flower Farmers Association, one of its clients.

The FSC's deregulation plan is drawing the attention of other financial services companies such as insurers and credit card companies that offer customized services for customers using compiled data.

Among services on the list are funeral, pet care and auto financing.

"The credit companies are especially believed to have competitiveness against the non-financial sector because they have data that can help them analyze customers' shopping behavior," a credit card company official said.

Meanwhile, some analysts speculate that deregulation may result in unfair competition between banks and their smaller competitors.

"Some industries are dominated by small and medium-sized enterprises (SMEs) that do not have sufficient capital to compete with lenders," said Hanyang University economics professor Ha Joon-kyung. "In that case, the banks will have an advantage in the uneven playing field which they have been heavily opposed to."

The professor referred to the lenders calling for competition on an equal footing against big tech firms in the platform business.

Jung Sung-in, a Hongik University economics professor, noted that the deregulation plan can be risky considering the banks' assets include customers' assets."Any possible risks from non-financial businesses owned by a lender in the future can spread to its banking business, meaning such risks can jeopardize customers' money," Jung said. "In that regard, the government should be cautious in deciding to what extent the banks should be allowed to invest in the non-financial sector."

Source: TheKoreaTimes

Risk Warnings and Disclaimers

Comments

Add to Favorites

Owen Li

Powerful 7.1 Earthquake Strikes Philippines_1

A powerful 7.1 magnitude earthquake struck the northern Philippine Island of Luzon on Wednesday killing four people, damaging buildings and sending strong tremors through the capital, Manila.

Two people were killed in Benguet province, one in Abra province, and one more in another province, Interior Secretary Benjamin Abalos told a news conference. Sixty people were injured, he said.

The quake struck about 11 km (six miles) southeast of the town of Dolores at a shallow depth of 10 km (6 miles), according to U.S. Geological Survey data.

"Despite the sad reports about the damages caused by the earthquake, we are assuring quick response to those in need and affected by this calamity," President Ferdinand Marcos Jr said on Facebook.

The quake hit close to Marcos family's political stronghold.

Renato Solidum, director of the state seismology agency, told DZRH radio station, strong aftershocks were expected.

"The focus of attention is on Abra and nearby provinces. This is a major earthquake," Solidum said.

Abalos said 173 buildings were damaged and 58 landslides reported, with 44 of the 60 injured in Abra province.

A hospital in Abra province was evacuated after the building partially collapsed but there were no casualties reported there, officials said.

Abra's vice governor, Joy Bernos, posted photos of the damaged Abra hospital on her Facebook account, which showed a gaping hole in its facade.

Other photos showed hospital beds, including one with a patient, being wheeled across a road and evacuated hospital staff.

Aftershocks

Abra, home to nearly 250,000 people, is a landlocked province in the northern Philippines. Its deep valleys and sloping hills are enclosed by rugged mountains.

The Philippines is prone to natural disasters and is located on the seismically active Pacific "Ring of Fire", a band of volcanoes and fault lines that arcs round the edge of the Pacific Ocean. Earthquakes are frequent and there are an average of 20 typhoons each year, some triggering deadly landslides.

Eric Singson, a congressman in Ilocos Sur province, also in the north, told DZMM radio station the quake had been felt strongly there and lasted 30 seconds or more.

"I thought my house would fall," said Singson. "Now, we are trying to reach people .... Right now there are aftershocks so we are outside our home."

The quake damaged heritage buildings in the city of Vigan, known for its old Spanish colonial architecture, on the west coast of Luzon.

Tourist Edison Adducul told radio he was taking photos of the Bantay Church Bell tower in Vigan when the quake struck, shaking the tower for up to three minutes.

Senator Imee Marcos said several churches were damaged.

"The antique bricks and coral stones fell down from the Bantay Bell Tower," she said.

The quake was also felt in Manila where several buildings were evacuated, with some people forced to flee from the 30th floor of one building, and the city's metro rail systems were halted at rush hour.

Source: Reuters

Risk Warnings and Disclaimers

Comments

Add to Favorites

Devin

Britain's rail network faces major disruption again on Wednesday as rail workers and station staff walk out in a row over pay and conditions, the latest in a catalogue of industrial unrest as wages fail to keep pace with soaring inflation.

The 24-hour strike by more than 40,000 members of the RMT and TSSA unions will see around half Britain's rail network closed, with train companies operating a much-reduced timetable and some parts of the country having no rail service at all.

Network Rail said passengers, including commuters, families heading off on summer holidays, and sports fans on their way to the Commonwealth Games in Birmingham which begins on Thursday, should only travel if necessary.

Strike action last month brought Britain's rail network close to a standstill for three days.

"Our members are more determined than ever to secure a decent pay rise, job security and good working conditions," RMT general secretary Mick Lynch said in a statement.

"Network Rail have not made any improvement on their previous pay offer and the train companies have not offered us anything new."

Earlier this month, the RMT said Network Rail, the owner and infrastructure manager of most of the rail network in Britain, made an offer of 4%, followed by a possible 4% the following year dependent on staff accepting changes to their contracts.

Inflation in Britain is running at a 40-year high and is expected to reach double digits later this year.

The government last week changed the law to make it easier for businesses to use temporary staff to minimise the impact of strike action.

The frontrunner in the race to succeed Boris Johnson as prime minister, Foreign Secretary Liz Truss, has pledged to go further, bringing in a new law guaranteeing a minimum level of service on "vital national infrastructure" and also raising the minimum threshold for strike votes.

Ferry services between Southampton in southern England and Cowes in the Isle of Wight will also be disrupted on Wednesday, as 120 staff begin a 24-hour strike in a dispute over pay, with more than 10 further walkouts planned throughout August.

On Saturday, train drivers at eight British rail companies will also strike in a dispute over pay.

Source: Reuters

Risk Warnings and Disclaimers

Comments

Add to Favorites

Devin

Deutsche Bank posted a better-than-expected 51% rise in second-quarter profit on Wednesday as investment banking revenues rose, though the lender was less optimistic about the division's prospects for the full year and warned about the economic outlook.

The results come amid a week of earnings reports by major lenders across Europe, where investors are watching for signs that a weaker economy, higher interest rates and the war in Ukraine are weighing on their operations and outlooks.

Germany's banks are at the centre of a geopolitical storm because the country is particularly dependent on Russian energy and its economy will be hit hard by any supply shortages.

Net profit attributable to shareholders was 1.046 billion euros ($1.06 billion). That compares with profit of 692 million euros a year earlier, and it is better than analyst expectations for profit of around 788 million euros.

It was the eighth consecutive quarter of profit, a notable streak after years of losses. Deutsche Bank Extends Profit Streak in Q2 But Warns on Economy_1

Deutsche Bank Extends Profit Streak in Q2 But Warns on Economy_1

This year is crucial for Germany's largest lender and Chief Executive Christian Sewing as he tries to deliver on targets he set out in a costly overhaul of the bank embarked upon in 2019.

Sewing wrote to staff that they should be proud of the results but in the memo sounded bleak about the near-term economic outlook.

"The months ahead will continue to be challenging. There is reason to believe that things will become even more difficult economically," he wrote.

The bank scaled back its cost target, no longer aiming for a cost-to-income ratio of 70% for this year due to inflation, bank levies and other costs related to the war in Ukraine. It now expects the ratio to be as high as the mid 70s.

The bank stuck to its overall revenue guidance but revised down its outlook for the investment bank, now expecting revenues to be "essentially flat" this year, compared with previous expectations for "slightly higher".

Deutsche - like its U.S. competitors - was hurt by declines in dealmaking amid the uncertainty created by the war, although trading held up because of volatile markets.

Overall investment banking revenues were up 11% in the quarter, but revenue from the investment bank's origination and advisory business declined 63% in the quarter.

Revenue for fixed-income and currency trading, one of the bank's largest divisions, rose 32%.

Revenues at the corporate bank rose 26%, helped by rising interest rates.

($1 = 0.9854 euros)

Source: Reuters

Risk Warnings and Disclaimers

Comments

Add to Favorites

Alex

North Korea's economy shrank for a second straight year in 2021, according to estimates by South Korea's central bank, as pandemic restrictions and international sanctions deepened the reclusive state's isolation.

The North's economy shrank an estimated 0.1 percent last year, the Bank of Korea (BOK) said on Wednesday, as UN sanctions and border closures and lockdowns hampered industrial activity and trade with neighbouring China.

The BOK estimate comes after gross domestic product (GDP) plunged an estimated 4.5 percent in 2020, the biggest contraction in more than two decades.

North Korea does not release official economic data, but the BOK has produced GDP estimates since the early 1990s using data collected from South Korean institutions that follow the country.

North Korea's economy rebounded from its 2020 low due to increases in agriculture and forestry production as weather conditions improved, a BOK official told reporters in Seoul.

"The mining and manufacturing and service sectors contracted as intense UN Security Council sanctions against North Korea's economy and COVID-19 induced lockdown measures continued but favourable weather conditions led to growth in the agricultural and forestry sector," the official said.

The BOK's data showed that industrial output, which accounts for more than 28 percent of the North Korean economy, fell 6.5 percent. By contrast, output from agriculture, forestry and fisheries, which accounts for nearly 24 percent of economic activity, rose over 6 percent.

The services sector, which accounts for a third of the economy, fell 0.4 percent.

Trade volume plunged an estimated 17.3 percent to $710m, as freight operations with China, its main trade partner, were suspended to prevent infections from crossing their porous land border.

North Korea temporarily resumed freight train services with China early this year before suspending them again in April.

North Korea acknowledged its first COVID cases in May after claiming to be free of the coronavirus for most of the pandemic.

Pyongyang has reported some 4.77 million cases of "fever", although authorities have not released figures for officially confirmed infections.

Earlier this month, state media claimed to be on the path to "finally defuse" the crisis after 99.8 percent of fever patients had fully recovered.

Analysts have poured doubt on the government's claims due to the country's lack of COVID vaccines and the decrepit healthcare system.

Source: News Agencies

Risk Warnings and Disclaimers

Comments

Add to Favorites

Damon

A second class action lawsuit has been filed against Terra, and the beleaguered stablecoin firm can expect that further legal action will be taken against it in the near future. Legal Cases Against Terra Begin to Mount Up_1

Legal Cases Against Terra Begin to Mount Up_1

Bragar Eagel & Squire announced their intention to mount a case against Terra via press release on Sunday. The law firm specializes in complex financial litigation representing individual and institutional investors in commercial law, securities, and derivatives.

The lawsuit is now the second class action filed against Terra after Nick Patterson filed a class action lawsuit through Scott+Scott on July 17.

It is not the last lawsuit that Do Kwon's Terra team can expect. On Tuesday, community member FatManTerra warned the company that further lawsuits are now pending, in jurisdictions outside of U.S. as well.

Whole lot of legal

According to Bragar Eagel & Squire, Terra violated the Exchange Act by "carrying out a plan, scheme, and course of conduct" that was intended to "deceive retail investors" and ultimately encouraged them "to purchase Terra Tokens at artificially inflated prices."

Furthermore, the law firm states that Terraform Labs (TFL) violated the Securities Act by selling unregistered securities. These claims are similar to the points argued by Scott+Scott in their earlier July 17 filing.

The filing further alleges that TFL violated the Racketeer Influenced and Corrupt Organizations Act (RICO), and was engaged in what was a fundamentally fraudulent and dishonest criminal operation defined by "a pattern of racketeering activity."

To double the fun Bragar Eagel & Squire filed a second major legal case this Sunday, this time against Alexander Mashinsky and Celsius Network LLC.

Enter FatMan

Terra and Terraform Labs do not have their miseries to seek. With two class action lawsuits in the U.S. Do Kwon and his team should have more than enough to contend with.

On Tuesday, leading community member FatManTerra announced that even if Terra does not go in search of further troubles, trouble is now looking for them. In a Twitter thread, the former true believer explained how his early disappointment changed as the community member learned more about the inner workings of TFL.

"I was heartbroken to see a system I truly believed in – decentralized money, better savings, and a stock exchange that everyone can access – collapse, it was a bittersweet ending," said FatManTerra, however, he consoled himself that, "Terra had been "attacked" by a malicious actor and nothing could have been done."

FatManTerra went on to allege that, "TFL had been faking Chai volume on the blockchain to give Terra the illusion of real-world demand. Jump had secretly bailed out UST in 2021 despite knowing it was not sustainable. TFL & Hashed had been spoofing Anchor volume creating a facade of stability."

With these revelations in mind, FatManTerra came to the final conclusion that, "Terra had been brilliantly disguised fraud all along."

The community member who is helping to organize participation in the Scott+Scott legal case now says that further legal action in other jurisdictions will now take place.