EBC Global Focus｜Gold Dips Slightly, Morgan Stanley Backs Micron Technology

On Thursday (February 12), a strong employment report boosted the US dollar, leading to a decline in gold. Official data showed that despite rising costs, China purchased gold for the 15th consecutive month in January.

The US government's deficit in January shrank compared to the same period last year, while tariff revenue surged, highlighting the crucial importance of the Supreme Court's highly anticipated ruling for the federal budget.

Tariff revenue for the month reached $30 billion, bringing the cumulative tariff revenue for this fiscal year to $124 billion. These trade rebalancing measures help stimulate economic growth and inflation.

The US added 130,000 new jobs in January, far exceeding the expected 55,000. This reduced the likelihood of a Fed rate cut, pushing the Treasury yield curve higher across the board.

BCA Research maintains a long-term bullish stance on gold while warning that, given overheated speculative momentum, caution is needed against short-term volatility and another "significant correction" in gold prices.

World Gold Council data shows that central bank gold purchases unexpectedly fell by 20% last year. However, gold investment demand surged, primarily driven by ETF inflows and increased demand for gold bars.

Despite unexpectedly strong non-farm payroll data, gold prices remained in a narrow range this week. A breakout from the current range seems unlikely before the release of the Consumer Price Index, so gold prices are expected to moderately retreat below $5050.

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As of the close on February 11, Micron Technology stock led the gains among EBC's main products. Morgan Stanley raised its target price from $350 to $450, maintaining an Overweight rating.

IBM's stock plummeted after it launched a new FlashSystem storage product line claimed to be "co-run by intelligent agent AI." Software stocks came under pressure again as investors debated the accelerating pace at which new AI tools are reshaping the industry landscape.

Driven by strong performances from mining, energy producers, and residential builders, the FTSE 100 index climbed to a new high, outperforming other European indices. Commodity prices continued their record-breaking rally.