FPG ：The momentum of gold is explosive, and bullish sentiment remains strong 1. Police in Brownsville, a Texas border city, reported that a car collided with a crowd at a bus stop near a local immigration shelter, resulting in the death of 7 people and numerous injuries. Maldonado, the head of the shelter, revealed that the surveillance video showed the vehicle running a red light about 100 feet away before hitting the people waiting by the roadside. He also mentioned that most of the victims were Venezuelan men. It is not clear from the report whether the driver intentionally hit the crowd or lost control of the vehicle. 2. The U.S. Congress is struggling to make progress on legislation to crack down on child labor in businesses. Republicans are not in support of the legislation, and Democrats are also facing challenges within the party to increase funds for federal agencies to provide more supportive services to children. As Congress prepares to discuss immigration policy, both parties have stepped back, abandoning hope for bipartisan cooperation in resolving the issue of child labor abuse in the United States. Republicans don't want their government to take responsibility, while Democrats don't want their government to fail to meet its obligations. 3. Yellen, in an interview with an ABC program, warned that failure to raise the debt ceiling could result in a constitutional crisis in the United States. The approval of debt issuance is the work and authority of Congress, and if it fails to perform its duties, the White House and the U.S. Treasury Department may have no choice but to invoke the Fourteenth Amendment to the U.S. Constitution to seize the power of Congress to issue its own debts. Yellen emphasized that there is no other way to protect the U.S., and it should not be considered whether to bypass Congress to issue debts directly. This situation could have a global impact on financial markets, and investors may question the value of U.S. bonds and the government's credit. 4. [Indonesia's Economic Growth Beats Expectations] Indonesia's quarterly economy has maintained growth, surpassing market expectations, thanks to factors such as flexible household consumption, a significant increase in material expenditure, and an increase in government expenditure. Despite the global economic slowdown and the decline in prices of major export products, Indonesia's economy is expected to maintain a growth rate of 5% or more on an annualized basis in 2023, demonstrating its stability and resilience. Comments: Household consumption continues to be the primary driver of Indonesia's economic growth in the first quarter from an expenditure perspective. 5. [How Far Will Ukraine's "Connection" Go?] During a recent visit to the Netherlands, Ukrainian President Zelensky discussed Ukraine's accession to NATO, saying, "We hope to receive a very clear message." In recent years, Ukraine has been seeking to join NATO, and Zelensky has called on NATO to accept Ukraine on numerous occasions following the Russian-Ukrainian conflict. However, NATO's position on Ukraine's membership remains vague. Comments: NATO appears to prefer Ukraine maintaining its current status rather than becoming a member, at least for the time being. 6. [Another Bank Goes Bankrupt, Irresponsible US Monetary Policy Causes Another Crisis] Recently, US financial authorities confiscated California's troubled First Republic Bank and sold it to JPMorgan Chase in an attempt to put an end to the two-month banking crisis that has rocked the financial system. The First Republic Bank is the third US bank to fail in two months. Earlier, the US Federal Reserve and the US Federal Savings Insurance Corporation released their investigation reports on the bankruptcies of the previous two banks, revealing that regional banking crises were the underlying cause. Comments: On May 1st, it was announced that the First Republic Bank would be closed and taken over by the banking regulator, the Federal Savings Insurance Corporation. Opinions from FPG special analysts on the current economic situation: King believes that despite the sharp rise in interest rates over the past year, the U.S. job market has shown resilience, and Fed policymakers will continue to observe economic data before making decisions on future monetary policy prospects. However, there is an impasse in Washington on raising the U.S. debt ceiling, which increases the risk of default before June 1. Daosheng thinks that concerns about the banking industry may have disappeared today, but the risk is still high and the credit environment will continue to tighten. Talks on the debt ceiling may bring the risk back. The gold market will not face any significant obstacles until the debt ceiling problem and banking turmoil are resolved. Dave believes that concerns about the debt ceiling of banks and the United States will keep the price of gold at an all-time high, but long-term disadvantages will play a role once these concerns subside. New indicators of financial pressure in developed economies show that gold prices are benefiting from the hedging needs related to banking problems. Yue Lin's view is that the Fed has reason to maintain a high position for a longer period of time due to the stickiness of inflation. However, the prospect of gold is bullish, with the key support level at $1990 and the first resistance level at $2040. The meeting in June may be suspended, and the main drivers of gold will be debt ceilings, banking worries, and recession risks. The above analysis is only for the views of market researchers and is for reference only and is not Regarded as a specific investment suggestion. #Forex #trading #tradingforex