Home Business International gold prices rose slightly, but the bulls must flee as soon as possible, and the FED’s tone has changed significantly_Sina Finance_Sina.com

International gold prices rose slightly, but the bulls must flee as soon as possible, and the FED’s tone has changed significantly_Sina Finance_Sina.com

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November 25th, InternationalGold priceSlightly higher, due to the pressure on the US dollar index, but the hawkish views of the Fed’s policymakers weakened the attractiveness of gold, keeping the price of gold below the important psychological threshold of US$1,800. San Francisco Fed Chairman Daley said on Wednesday that if employment and inflation data remain stable, she is open to ending the bond purchase plan sooner. She expects the Federal Reserve Policy Committee to raise interest rates once or twice next year. Daley is regarded as the most cautious official at the Fed’s decision-making level.

On Thursday (November 25), international gold prices rose slightly due toDollar indexUnder pressure, the hawkish views of the Fed’s policymakers have weakened the attractiveness of gold, keeping the price of gold below the important psychological threshold of $1,800.

14:42 Beijing time,Spot goldIncreased 0.23% to 1,792.63 US dollars per ounce; COMEX gold main contract rose 0.45% to 1,795.0 US dollars per ounce;Dollar indexIt sinks 0.07% to 96.731.

The price of gold has fallen 4.5% from the five-month high reached last week. The minutes of the Fed’s November policy meeting released overnight showed that more policymakers have hinted that if inflation remains high, they are open to speeding up the end of the bond purchase program and speeding up the pace of interest rate hikes.

According to the current progress, the Fed will complete the reduction of debt purchases in June next year. However, since the last meeting, more and more policymakers have called for an acceleration of this pace, as inflation continues to be high and the job market has become stronger. The number of initial claims for unemployment benefits in the United States fell to the lowest level since 1969 last week, indicating that economic activity is accelerating.

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Michael Feroli, chief U.S. economic analyst at JPMorgan Chase, said: “In May (the Federal Reserve) can easily set aside this issue, but they have paid more and more attention to it every month afterwards. In view of the improvement in the labor market… The closer they are to full employment, they may be able to act more confidently.”

The persistence and expansion of price pressure surprised both the White House and the Federal Reserve and prompted them to respond. U.S. President Biden and Fed Chairman Powell emphasized earlier this week that they will take measures to solve the problem of rising prices of daily necessities such as food, gasoline and rent.

San Francisco Fed Chairman Daley said on Wednesday that if employment and inflation data remain stable, she is open to ending the bond purchase plan sooner. She expects the Federal Reserve Policy Committee to raise interest rates once or twice next year. Daley is regarded as the most cautious official at the Fed’s decision-making level.

Yes Securities analyst Hitesh Jain said: “As the market digests some monetary policy normalization, this should depress gold prices in the short term. But considering the fiscal burden of high interest rates and accumulated huge government debt, major central banks are unlikely. Raise interest rates drastically.”

Therefore, Jain added that as the basic effect of allowing economic retaliatory rebound after the new crown pandemic weakens, the momentum of economic growth next year may lose momentum. The central bank’s insistence on the normalization of a moderate monetary policy should support gold prices for a longer period of time. (Huitong.com)

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Editor in charge: Tang Jing

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