Overnight Market Review (2022.6.21) Global financial market uncertainty caused by rising inflationary pressures and geopolitical turmoil helped the gold market withstand a sharp rise in US interest rates. Gold prices are expected to end the year lower, however, as rising real yields ultimately dominate investor sentiment, three precious metals analysts said.
Previously, the latest release of the Fed’s decision on interest rates: June 15, 2022 Current value: 1.75% Predicted value: 1.50% Previous value: 1.00% In order to curb high inflation, the largest interest rate hike since 1994 was carried out, and some central banks also Following the actions of the Federal Reserve.
Federal Reserve Chairman Jerome Powell will testify before Congress later this week. The Fed earlier this month approved the largest rate hike in 25 years. Although gold is often viewed as an inflation hedge, higher interest rates and bond yields increase the opportunity cost of holding gold as a non-yielding asset.
Trading strategy deployment: it is recommended to go short at high levels
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