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Gold prices march-on above a key support structure as inflation expectations ramp-up – FXStreet

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  • Gold bulls firming their hand in the 1800 levels as confidence in the economy and inflation expectations grow.
  • A COVID-19 vaccine could be proven to be successful in a study that will start around 27th July.

Gold has made a mark on the $1,800 level, holding the support structure above $1,786/90 on a retest and pulling in commitments from the bulls.

Inflation expectations and uncertainties remain the core fundamentals of the outlook. 

We have seen risk markets improved on the back of promising vaccine results which tempered some of the bullishness out of gold momentarily.

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Banks earnings season, so far, exceptionally good 

Meanwhile, US equities are a strong focus for this week considering the bank’s earnings.

As much of the coronavirus markets have been, full of surprises, it might have been somehow expected to be no different for this week’s earnings results considering it was a quarter ladened with economic lockdowns and bankruptcies in the US. 

Even with the CEO of JPMorgan Chase’s stark warnings in yesterday’s guidance yesterday, investors are committed to the bid on the back of stronger-than-expected second-quarter earnings results from the majority of the results so far. 

Despite some recent positive macroeconomic data and significant, decisive government action, we still face much uncertainty regarding the future path of the economy,

Chase CEO Jamie Dimon said in a statement. 

However, we are prepared for all eventualities as our fortress balance sheet allows us to remain a port in the storm.

This is not a normal recession. The recessionary part of this you’re going to see down the road… You will see the effect of this recession. You’re just not going to see it right away because of all the stimulus.

Today, Goldman Sachs also reported stronger-than-expected second-quarter earnings results, as surging revenues despite the pandemic buttressed the bottom line and its stock price.

Goldman’s Fixed Income, Currency and Commodities (FICC) sales and trading revenue $4.23 billion, the highest quarterly revenue in nine years.

Meanwhile, equities trading generated $2.94 billion in revenues, its best quarter in 11 years. Collectively, those businesses accounted for 54% of Goldman’s quarterly revenues.

The firm’s core investment banking business delivered $2.66 billion in earnings, up 36% from the same period a year ago.

The turbulence we have seen in recent months only reinforces our commitment to the strategy we outlined earlier this year to investors,

CEO David Solomon said in a statement.

While the economic outlook remains uncertain, I am confident that we will continue to be the firm of choice for clients around the world who are looking to reshape their businesses and rebuild a more resilient economy,

he confidently added, setting the stage for higher markets for the foreseeable future. 

So where does this leave gold?

The yellow metal can take a breather on a mix of risk-on and firmer dollars, but the inflation injection could be real should the rubber hit the road in terms of a vaccine impetus.

An experimental vaccine, developed by Fauci’s colleagues at the National Institutes of Health and Moderna Inc is the first COVID-19 vaccine tested in the US and it has been reported to have heightened 45 volunteers immune systems just the way scientists had hoped.

“No matter how you slice this, this is good news,” Dr. Anthony Fauci, the US government’s top infectious disease expert, told The Associated Press.

The shots are poised to begin key final testing around July 27. It will be a far larger study of 30,000-people which will prove whether or not the shots really are strong enough to protect against the coronavirus.

Any weakness from a risk-on environment should be only a temporary knee-jerk reaction.

A vaccine would do well to boost inflation expectations as confidence grows in the economic recovery, leaving real rates trading near their lows, which is a powerful driver of gold prices,

analysts at TD Securities argued. 

Looking forward, however, we may soon be entering a period in which tactical trading could reap its benefits.

After all, as inflation expectations normalize towards pre-pandemic levels, the marginal tick higher in expectations may have a more stringent hurdle.

Also, while not at worrying levels just yet, we are starting to note a renewed speculative interest in the gold futures market, as positioning levels grew substantially in recent weeks.

On the industrial side, should commodity demand resume its upward trajectory, the white metal could continue to outperform — benefiting from both the positive precious metals environment and its industrial characteristics.

That being said, we do not expect significant flow from CTA trend followers for the time being.

Gold levels

The daily chart has shows price holding above structure follwing a correction of the prior impulse. 

Bulls will look for the current resistance to turn to support to confirm an upside bias within this potential impulse. 

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U.S. tightens rules for dairy cows a day after bird flu virus fragments found in pasteurized milk samples – Toronto Star

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Infected cows were already prohibited from being transported out of state, but that was based on the physical characteristics of the milk, which looks curdled when a cow is infected, or a cow has decreased lactation or low appetite, both symptoms of infection.

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New technology to advance women’s cancer care at Southlake

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NEWS RELEASE
SOUTHLAKE REGIONAL HEALTH CENTRE
**************************
This Cancer Awareness Month, Southlake is adding advanced technologies to detect and treat breast cancer and other women’s cancers thanks to generous community donor support, most recently through the HERE is Where Cancer Meets its Match campaign. New cancer care technology, including new mammography machines, the MyoSure System and the MOLLI 2® System will make a measurable impact in diagnosing and treating women’s cancers in the communities Southlake serves.

Southlake is installing three new mammography machines to expand its breast cancer screening program to 1,500 more women each year. Two of these machines have new biopsy capabilities that will reduce the number of cancelled exams due to equipment failure, ensuring timely care for women. Women ages 40 to 49 years old will be able to self-refer for publicly funded mammograms through the Ontario Breast Screening Program starting this fall.

“Early detection is critical when treating breast cancer and other women’s cancers,” said Lorrie Reynolds, Director, Regional Cancer Program at Southlake. “We treat more than 1,700 breast cancer patients at Southlake every year. By adding advanced technology, like the new mammography machines, we’re ensuring women have the best experience at Southlake.”

Southlake is also introducing the MyoSure System, an innovative technology that can help detect female reproductive cancers. Damaged tissue in a woman’s uterus such as fibroids and polyps can now be removed in a precise, minimally invasive procedure that leaves the rest of the uterus intact. This will improve the overall patient experience by supporting faster recovery, reducing the risk of infection and giving more women the option to have children. An estimated 200 women per year will benefit from the MyoSure System.

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The new mammography machines and the MyoSure System build on Southlake’s recent investment in the MOLLI 2® System, a made-in-Canada wire-free breast localization technology.  This technology is considerably less invasive and more accurate when compared to wire-guided localization, resulting in a better patient experience and improved cosmetic outcomes.  More than 200 women each year will benefit from this innovative medical device as they are treated for breast cancer at Southlake.

“As a clinician caring for women with cancer in our community, I’m incredibly proud of the work Southlake is doing to advance women’s health and improve patient experiences,” said Sara Temple, MD, Surgical Oncologist and Chief of Surgery at Southlake. “Women who visit Southlake can be confident that they are receiving leading edge care, close to home when they need it most.”

The World Health Organization anticipates a 77 per cent increase in cancer diagnoses by 2050.  Southlake serves some of the fastest growing communities in Canada and anticipates that the number of patients requiring cancer care will grow. By investing in new technology, Southlake is ensuring that women in the communities it serves have access to leading edge cancer care. All of these investments were funded with support from community donors who generously gave to Southlake to support investments into women’s health at the hospital.

“The generosity of our donor community and the impact they have made for women receiving cancer diagnosis and treatment at Southlake is something we can all take great pride in,” said Jennifer Ritter, President and CEO of Southlake Foundation. “From our Women’s Health Initiative donors supporting new mammography machines, to the Ladies in Philanthropy for Southlake funding the MOLLI 2 System, to our long-standing partners The Edge Benefits and Pheasant Run Golf Club enabling the introduction of MyoSure System through their joint annual charity golf tournament, we are incredibly lucky to share a vision of access to exceptional care for everyone who depends on Southlake when they need us most. Thank you, to every donor who contributed to these important upgrades to care for women.”

Southlake Foundation’s HERE is Where Cancer Meets its Match campaign supports the Stronach Regional Cancer Centre at Southlake. For more information or to make a donation, visit: southlake.ca/HERE.

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Pasteurized milk includes remnants of H5N1 bird flu, U.S. officials say

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The U.S. Food and Drug Administration says that samples of pasteurized milk have tested positive for remnants of the bird flu virus that has infected dairy cows.

The agency stressed that the material is inactivated and that the findings “do not represent actual virus that may be a risk to consumers.” Officials added that they’re continuing to study the issue.

“To date, we have seen nothing that would change our assessment that the commercial milk supply is safe,” the FDA said in a statement on Tuesday.

The announcement comes nearly a month after an avian influenza virus that has sickened millions of wild and commercial birds in recent years was detected in dairy cows in at least eight states. The Agriculture Department (USDA) says 33 herds have been affected to date.

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FDA officials didn’t indicate how many samples they tested or where they were obtained. The agency has been evaluating milk during processing and from grocery stores, officials said. Results of additional tests are expected in “the next few days to weeks.”

WATCH | Bird flu spread in U.S. cows:

 

Bird flu is spreading in cows. Are humans at risk? | About That

15 days ago

Duration 8:54

For the first time ever, avian influenza, or H5N1 bird flu, was detected in roughly a dozen dairy cow herds across the U.S. About That producer Lauren Bird explores why scientists and public health officials are concerned about the cross-species transmission and whether humans are now at higher risk.

The polymerase chain reaction (PCR) lab test the FDA used would have detected viral genetic material even after live virus was killed by pasteurization, or heat treatment, said Lee-Ann Jaykus, an emeritus food microbiologist and virologist at North Carolina State University

“There is no evidence to date that this is infectious virus, and the FDA is following up on that,” Jaykus said.

Officials with the FDA and the USDA had previously said milk from affected cattle did not enter the commercial supply. Milk from sick animals is supposed to be diverted and destroyed. Federal regulations require milk that enters interstate commerce to be pasteurized.

Tests for viable virus underway, agency says

Because the detection of the bird flu virus known as Type A H5N1 in dairy cattle is new and the situation is evolving, no studies on the effects of pasteurization on the virus have been completed, FDA officials said. But past research shows that pasteurization is “very likely” to inactivate heat-sensitive viruses like H5N1, the agency added.

The agency said it has been evaluating milk from affected animals, in the processing system and on the shelves. It said it is completing a large, representative national sample to understand the extent of the findings.

The FDA said it is further assessing any positive findings through egg inoculation tests, which it described as a gold standard for determining viable virus.

Matt Herrick, a spokesperson for the International Dairy Foods Association, said that time and temperature regulations for pasteurization ensure that the commercial U.S. milk supply is safe. Remnants of the virus “have zero impact on human health,” he wrote in an email.

Scientists confirmed the H5N1 virus in dairy cows in March after weeks of reports that cows in Texas were suffering from a mysterious malady. The cows were lethargic and saw a dramatic reduction in milk production. Although the H5N1 virus is lethal to commercial poultry, most infected cattle seem to recover within two weeks, experts said.

To date, two people in the U.S. have been infected with bird flu. A Texas dairy worker who was in close contact with an infected cow recently developed a mild eye infection and has recovered. In 2022, a prison inmate in a work program caught it while killing infected birds at a Colorado poultry farm. His only symptom was fatigue, and he recovered.


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