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Powell still weighs on high inflation, gold futures face a pullback

This Thursday, the gold futures traded on a small Yinxian, and the main force of Shanghai Gold opened at 395.38 yuan/gram, and the price of gold fell slightly during the day . The main opening price of US gold was 1819.2000 US dollars per ounce, and the gold price fine- tuned the downward trend during the day.

Although Fed officials have recently appeared one after another to express the possibility of a soft landing of the economy, and Powell also said that although the Fed has the risk of excessive tightening, insufficient policy action in curbing inflation may bring greater risks; although the price of gold fell, it did not Not out of serious downside. At the same time, Powell also pointed out that the real danger is that high inflation is entrenched, inflation expectations are unstable, and the biggest risk is persistent high inflation, not that raising interest rates will significantly slow economic growth. Despite the remarks, the facts that can be known and Powell admitted are: economic growth has indeed slowed down sharply, and high inflation is also uncontrollable.

In general, interest rate hikes and worries about economic recession cannot be dissipated. Although interest rate hikes are expected to lower the price of gold, interest rate hikes will intensify the slowdown in economic growth, and rising inflation will continue to weigh on consumers. cause damage and reduce purchasing power. The slightly weaker-than-expected GDP data continued to spread fears of a possible recession. As a result, investors may be seen turning to safe-haven assets such as gold.

For the intraday market, the main body of gold futures trading is still empty. In Asia and Europe, look at the high point of 1826 to suppress, and break through 1826 to see the suppression of 1835. Only these two points can be considered empty. If the US market breaks 1835, it can form a rising unilateral market, and the sharp rise can be seen at 1850 and 1865.