Hong Kong Sets Sights on Global Gold: New Trading Infrastructure Plans Coming This Year

The massive issuance of Treasury bills is rapidly draining excess cash from the financial system, creating potential liquidity challenges for the U.S. Treasury. With over $1 trillion in T-bills expected to flood the market over the next 18 months following the debt ceiling increase to $41.1 trillion, the Federal Reserve’s overnight reverse repo facility (RRP) has plummeted from over $2 trillion in mid-2023 to just $182 billion recently. Money market funds, holding a record $7.4 trillion in assets, are eagerly absorbing the new T-bill supply by reallocating from repos and the Fed’s RRP facility. However, this dramatic shift raises concerns

Money markets are increasingly betting the Bank of England will keep interest rates at 4% for the remainder of 2025, backing away from expectations of further cuts. On Monday, traders reduced their bets on another quarter-point rate reduction this year, with swaps at one point implying less than a 50% chance of such a move—a significant shift from earlier this month when a cut was fully priced in. The change in sentiment reflects signs of faster inflation and a more resilient UK economy, which reduce the case for additional monetary easing. The BOE had most recently cut rates from 4.25%

With the US Dollar Index down approximately 8% in 2025, investors are finding significant opportunities to profit from dollar weakness. Key strategies include investing in foreign currencies through ETFs like the Euro Trust (FXE) and Japanese Yen Trust (FXY), commodities that typically rise when the dollar falls, international equities, and gold. The dollar’s decline has been driven by expectations of Fed rate cuts, policy uncertainty under the Trump administration, and global capital reallocation away from US assets. Financial experts recommend diversifying portfolios with at least 50% of equities outside the US, including emerging markets, while maintaining a 5-10% allocation to

Uganda has launched its first large-scale gold mine, the $250 million Chinese-owned Wagagai Gold Mining Project in Busia District, marking a significant shift in the country’s mining strategy. The facility will process 5,000 tons of ore daily and produce approximately 1.2 metric tons of refined gold annually at 99.9% purity. President Museveni emphasized this represents a move away from exporting unprocessed minerals, which has historically denied Uganda significant revenue. The project is expected to generate over $100 million annually for the next 21 years and create more than 3,000 direct jobs. Uganda earned $3.4 billion from gold exports in 2023