September 7th News, today on Wednesday, under the expectation of the Federal Reserve to raise interest rates by 75 basis points in September, the prospect of further aggressive interest rate hikes by most central banks around the world enveloped the market, and the price of gold was significantly suppressed.
After the gold fell below the 1700 mark in the day, it rose back to the starting point of 1704 dollars. As of press time Wednesday afternoon, gold was quoted at $1,705.1 an ounce.
Yesterday Tuesday, according to the latest report released by the Institute for Supply Management (ISM), activity in the US services sector was better than expected.
The U.S. services sector rebounded for a second straight month in August on strong orders growth and employment, while supply bottlenecks and price pressures eased.
Just after the beautiful data on the US service industry was released last night, the market expects that the possibility of the Fed raising interest rates by 75 basis points in September has risen to around 72% again.
This evening, Cleveland Fed President Mester and Fed Vice Chairman Brainard will also speak, and officials are expected to pave the way for a 75 basis point rate hike in September.
Against this backdrop, the Reserve Bank of Australia on Tuesday raised the overnight call rate by 50 basis points to a seven-year high of 2.35%, and did not rule out more tightening in the future to curb sharply rising inflation.
The RBA did drop talk of “normalizing” policy as it ended its September policy meeting, suggesting rates are now closer to neutral, but it also said there was more work to do.
It was the bank’s fifth rate hike since May, in line with broad market expectations, and the statement was balanced.
Markets tend to think that the RBA will raise interest rates by another 50 basis points in October, with rates peaking at around 3.85%. Inflation is currently at a 21-year high of 6.1% and could hit 7% by Christmas.
The Bank of Canada is also expected to raise interest rates by 75 basis points tonight, and the Bank of Canada is widely expected to raise interest rates again by a large margin on Wednesday, raising its policy rate into restrictive territory for the first time in 20 years.
National Bank of Canada Wealth Management expects the Bank of Canada to decide on a fifth rate hike at its meeting, with a 75 basis point hike the most likely outcome.
If in line with expectations, this will be the fourth major rate hike this year, bringing the tightening policy since March to a scale of 300 basis points.
Bank of Canada Governor Macklem has made it clear that the central bank is focused on raising interest rates to the “high end or slightly above” of neutral, the 2%-3% where monetary policy neither stimulates nor drags down the economy. interval.