MC Prime : Daily Market Update 0514

🔹 U.S. CPI came in below expectations, indicating cooling inflation, but the data has yet to reflect the impact of tariffs, so the Fed is not expected to ease policy just yet.

🔹 The U.S. lifted restrictions on chip exports, raising hopes for improved U.S.-China trade relations and AI development, which supports tech stocks and overall stock market gains.

🔹 Cooling inflation temporarily boosts expectations of a Fed rate cut.

🔹 Reduced economic risks have led to outflows from safe-haven assets, putting pressure on gold prices.

🔹 Progress in trade talks and the easing of chip restrictions may lead to a correction in gold after its previous rise driven by tariff concerns.

📌Key event:

Fed Vice Chair and other officials are set to speak tonight. If they suggest that rate cuts are not needed in the near term, precious metals may come under pressure. On the other hand, if they acknowledge easing inflation pressures and reinforce confidence in economic growth, this could support further gains in U.S. equities.