International spot gold traded up in a narrow range on Thursday (July 7), with gold prices trending slightly higher, with daily gold prices fluctuating above $1,740/oz.
Although the us dollar index is currently in a strong trend, the minutes of the overnight fed meeting showed that both 50 basis points and 75 basis points of interest rate hikes in July are possible, weakening the more aggressive rate hike expectations. In addition, the market has also priced in a 75 basis point rate hike. , so this month’s interest rate hike has limited pressure on gold prices. If an interest rate hike of 50 basis points will benefit gold prices, so now, it is an early negative reaction to gold prices.
The fact that the July rate hike remarks in the Fed minutes also showed that the Fed acknowledged the impact of rate hikes on the economy; suggesting that the economy, which is already on the brink of recession, may slow down further. Although the short-term bias will be toward the US dollar, which also has the ability to hedge, once the rate hike is slowed down, the gold price will return to the medium- and long-term bullish trend.
The market is now focusing on the minutes of the Fed meeting and the US non-farm payrolls report. Regardless of non-agricultural data, it is difficult to change the policy trend for a period of time. Although the market expects that the weak employment data may make the gold price rebound, but if it needs to continue to strengthen, the US CPI data will need to weaken next week. Only in this way, the Fed will A new round of large-scale policy tightening will be stopped. In terms of data, the impact of non-agricultural materials this time is limited, and the back-and-forth operation can continue to be based on the gold price point before the announcement.
On Wednesday, the U.S. dollar index refreshed a nearly 20-year high of 107.28, and the price of gold weakened sharply, falling below the key support around 1750, and once hit a new low of $1732.17 per ounce in nearly nine months. Although fears of economic recession loomed over the market, the middle line may give Gold prices provide support, but in the short term, safe-haven funds continue to flock to the U.S. dollar, which makes gold prices face further downside risks. In the short term, pay attention to the support near 1721.76 on September 29, 2021.
After the price of gold fell in the short-term in the day, the low-level empty orders were pocketed in time, which may be accompanied by repeated dips and rebounds, and then poised to fall. On the whole, the top of the gold is concerned about the first-line pressure of 1748-1758, and the bottom is concerned with the first-line support of 1730-1720. Today’s operation suggests that the rebound is mainly based on the high altitude, supplemented by stepping back and doing more.
According to the gold market center of Jintou.com, at 11:21 Beijing time, the gold spot price today was temporarily reported at $1746.03 per ounce.