Home » Powell clearly raises interest rates unconditionally, gold prices are under pressure and may fall | Fed_Sina Finance_Sina

Powell clearly raises interest rates unconditionally, gold prices are under pressure and may fall | Fed_Sina Finance_Sina

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Powell clearly raises interest rates unconditionally, gold prices are under pressure and may fall | Fed_Sina Finance_Sina


On June 24, the international spot gold fluctuated at US$1,825 per ounce in the intraday market, and the yellowgold priceThe grid maintained a slight upward trend, and the gold fluctuated within the intraday fine-tuning.

Powell makes it clear that the interest rate hike is unconditional, and gold dives again and falls to 1820

Yesterday Thursday, Federal Reserve Chairman Powell’s semi-annual monetary policy hearing in Congress entered its second day. Facing the House Financial Services Committee, he reiterated his hawkish stance that “the Fed’s commitment to combat high inflation in the United States is unconditional.” He said he would be reluctant to change the stance of monetary policy tightening until he saw clear evidence that inflation was cooling. This sends a signal to the outside world that the United States will continue to aggressively raise interest rates. Specifically, when asked by the House of Representatives how they would deal with possible trade-offs when the Fed’s rate hikes significantly slowed the economy but failed to bring down inflation quickly.

Powell said the central bank would be reluctant to switch from raising to lowering rates under these circumstances until it sees clear evidence that inflation is falling in a convincing fashion. Asked how serious the Fed’s commitment to fighting high inflation is, Powell said: “Our commitment is unconditional, the U.S. labor market is a bit unsustainably overheated, and we’re too far off our 2 percent inflation target.

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Although gold is considered a hedge against inflation and economic uncertainty, rising interest rates tend to raise bond yields, thereby increasing the opportunity cost of holding non-yielding gold, with gold falling as low as the 1820 mark.

From a technical point of view, the daily line of gold on Thursday closed under the suppression of Bollinger’s middle rail, and it was a bare-footed Yin line, indicating that the shorts are still unfinished and have not finished. Bollinger’s lower track support point is 1810. If the strength is too large, look at the previous low of 1802, and the suppression point of weak shock is the moving average of the H4 cycle and the Bollinger suppression, 1830, 1836, but the Bollinger has not opened for the time being in the H4 cycle, and the performance of gold is not extremely weak.

Therefore, although the gold is bearish during the day, it cannot be aggressively shorted. There may be room for a rebound in the Asia-Europe session, and the gains and losses at 1830 and 1836 will be seen above. For the intraday market, if you are aggressive, you can go directly to the market near 1822. Depending on the size of the rebound, 1830 and 1836 can be out of the market if they rise, and then consider the space for backhand shorting. It is worth noting that the recent trend of gold has been fluctuating. If the European and American markets stand above 1836, don’t be stubborn and look weak. There may be a second shock to move higher.

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According to the gold market center of Jintou.com, at 11:06 Beijing time, the spot price of gold today was temporarily reported at US$1,825.03 per ounce.

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