Overnight Market Review (2022.8.24) The international gold price rose to a one-week high of US$1,762.04/oz, supported by the fall in the US dollar. Investors awaited hints from Federal Reserve Chairman Jerome Powell on the outlook for interest rates at the annual meeting of central banks in Jackson Hole.
Powell will speak at the annual meeting of global central banks in Jackson Hole on Friday (August 26). Investors in global financial markets were at the Federal Reserve reaffirming its commitment to curb inflation or signaling a “shift” to moderate rate hikes.
Higher interest rates raise the cost of holding gold, a non-yielding asset, while benefiting the dollar. The Fed has raised the federal funds rate by a cumulative 225 basis points since March to combat high inflation, noting that further policy tightening will depend on economic data.
Trading strategy deployment: it is recommended to go short at high levels
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