Weekly

June 22nd

Today's amplitude range

The market is paying attention to the speech of US Federal Reserve Chairman Powell in Congress. In his testimony yesterday, he mentioned that inflation is far from the 2% target set by the administration, and almost all officials of the Open Market Committee expect US interest rates to rise again, but everything is still based on data. The gold price once fell below $1920 and may have bottomed out and taken over, but to reverse the decline, it depends on whether it can rise above $1940. Today, it is recommended to have a fluctuation range of $1920 to $1940.

  The offshore price of the Chinese yuan weakened, briefly below the conversion rate of 7.2 to the US dollar, and hit a 7-month news low. The Hang Seng Index opened nearly 300 points low, with a maximum drop of 432 points. The Hang Seng Index ultimately fell 388 points, or 2%, to close at 19218 points.
Two hawkish members of the European Central Bank believe that the stubbornness of inflation in the eurozone has been strengthened by the tight job market, and that interest rates must remain high for a long period of time to cope. The market expects the European Central Bank to tighten the market by the same amount in July, following last week's 25 point rate hike, which puts pressure on risk markets. The three major European stock markets are all down, and the German DAX index is down 0.55%, The Paris CAC index in France fell 0.46%, while the FTSE 100 index in the UK fell 0.13%.

Market attention is focused on Federal Reserve Chairman Powell's two-day speech in the US Congress starting on Wednesday. Yesterday, his testimony mentioned that inflation is far from the 2% target set by the administration, and almost all officials of the Open Market Committee expect US interest rates to rise again. Worried about the Federal Reserve's interest rate hike, all three major Wall Street stock indexes also fell, with the Dow Jones Index down 0.3%, the Standard&Poor's 500 Index down 0.52%, and the Nasdaq Composite Index down 1.21%.

The market is paying attention to the speech of US Federal Reserve Chairman Powell in Congress, and the market expects his words to lean towards hawks. The gold market was initially under pressure, with a minimum of $1919.2. Later, during his testimony before the House Financial Services Committee, he stated that Federal Reserve members estimate that interest rates need to be raised, but the pace will be more moderate, and everything will be based on data. His conservative response prompted the market to slightly withdraw its concerns, narrowing the decline in gold prices, reaching a peak of $1939.6 and eventually closing at $1932.5, a decrease of $3.8.
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