Overnight Market Review (2022.5.30) Last week, U.S. inflation slowed down again, and investors’ expectations for aggressive interest rate hikes by the Federal Reserve cooled down. U.S. stocks rose sharply, the dollar fell slightly, and gold and crude oil rose. Yesterday coincided with the US Memorial Day, US financial markets were closed.
At the same time, it also drove the international gold price to strengthen, because the US dollar index continued to hit a new low of 101.384 since late April, making gold more attractive to buyers who hold other currencies. The decline in the U.S. dollar index may be related to expectations for a drop in U.S. nonfarm payrolls due later in the week.
Global gold market: Gold prices edged up last week and rose for a second week in a row, helped by a pullback in the dollar and U.S. Treasury yields, while concerns over aggressive Fed tightening receded. Gold futures were up 0.2% at $1,851.3 an ounce.
Given that world stock markets have lost trillions of dollars since the U.S. and other advanced economies began tightening policy, correctly predicting the Fed’s focus is the holy grail for global financial market participants.
Trading strategy deployment: it is recommended to go short at high levels
All transactions involve risks, the above analysis is for reference only. When placing an order, be sure to set the lot size and remember to set the stop loss.