Overnight Market Review (2022.7.20) Affected by the expectation that the pace of aggressive interest rate hikes by the Federal Reserve will slow down, the US dollar continued to weaken on Tuesday, and commodities rose again. In addition, the euro rose sharply as the European Central Bank is also expected to raise interest rates by 50 basis points.
In the gold market, August gold futures on COMEX were flat at $1,710.70 an ounce. A pullback in the dollar is taking some of the pressure off gold. However, gold still faces headwinds as central banks around the world continue to raise interest rates to curb inflation.
However, according to reports, the European Central Bank may step up its rate hikes and is now considering raising rates by 50 basis points, twice as much as previously expected. The forecast boosted the euro, posting its biggest one-day gain in a month.
Meanwhile, a rebound in U.S. stocks dampened gold prices after earnings on Wall Street remained solid.
Trading strategy deployment: it is recommended to go short at high levels
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