Gold remains bullish for the 5-day - Traders have $1,900 in sight

Introduction

Welcome viewers to our channel, where we bring you news highlights on recent events. Our article today views the market sentiment on gold, the United States position on protecting Taiwan and lastly, the (IPEF) Indo-Pacific Economic framework for Prosperity.

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Gold Outlook

Early in the Asian session, spot Gold opens at $1,865/ounce. The market is losing confidence in the Federal Reserve's ability to react with the necessary aggression to combat inflation and prevent a recession.
Over the past few days, global stocks traded with a "soft tone" as many investors flock toward safe-haven assets such as gold.
Economists and investors believe that a less aggressive stance will occur after the upcoming potential 50 basis points hike. Atlanta Fed President Raphael Bostic states that the Fed can prevent a recession in the US economy despite the rate hikes.
According to the (IGCS) IG Client Sentiment indicator (an indicator that shows the market position of traders), 84% of retail traders are net-long on gold.
The (USD) United States Dollar, the impending Russian oil embargo, and the easing of the Chinese economy due to Covid-19 are possible contributors to the bullish note on gold. Traders believe that gold may break $1,900 over the coming week.

The United States position on China & Taiwan

The United States are in hot water with China as President Biden showed their support for defending Taiwan should an attack by Beijing take place.
China's State Council's Taiwan Affairs office release a statement indicating that the US is playing the "Taiwan card" to contain China.
Xinhua State outlet spokesperson Zhu Fenglian advises the US to refrain from making any remarks or actions that violate the established principles between Washington and Beijing.
However, Pentagon officials in Washington have indicated that President Biden's comments do not signal a change in US Position. Secretary of Defence Lloyd Austin told reports at the Pentagon that America is committed to maintaining peace and stability across the Taiwan Strait.
Alongside the SOD, top US General Mark Milley refused to comment on the risks and consequences of defending Taiwan in the event of a Chinese invasion.

(IPEF) Indo-Pacific Economic Framework for Prosperity

President Biden unveiled IPEF in Japan on Monday during his second Asian trip to increase the US's presence in the region.
The IPEF seeks to improve ties through common standards in different economic sectors. Countries such as Australia, Brunei, Indonesia, India, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Thailand and Vietnam are the initial target of the US.
Sectors covered under the framework include trade, supply chains, clean energy and infrastructure, tax and anti-corruption. The framework attempts to repair the damage created by his predecessor, President Donald Trump, that saw his withdrawal from the (TTP) Trans-Pacific Partnership agreement in 2017.
Analysts and officials in the region state that the framework's scope is limited and lacks binding commitments. Nick Bisley, the dean of humanities and social sciences and professor of international relations, indicate that the issue with the framework is that "it sets out a high level of intentions, which makes sense, but until specific agreements are agreed and signed, the actual impact is impossible to gauge".