Weekly

Gold continued to fluctuate violently, and Black Monday survived.

Worried about the recession in the United States and the pressure to raise interest rates in Japan, the market broke out on Monday. Carry Trade opened its position and caused a global small stock market disaster. European and American stock markets plunged, and Japanese and Korean stocks rarely triggered the dissolution mechanism. The so-called Carry Trade means that some investors in the market used to borrow yen and buy stocks because of the low interest rate and low loan cost. When the market is booming, the profits earned by the stock market can repay the loan interest borrowed in yen.

However, on that day, the principal and interest rate rose, the financing cost increased, or the market situation reversed, so investors' profits were not enough to repay the interest, so they needed to deleverage, that is, the so-called opening of positions. Once the opening tide started, it could even cause panic and people stepping on others. trader needed to sell shares in the market and buy back Japanese yen to pay off debts, which led to Black Monday, and the lack of liquidity also dragged down the performance of gold, and the price of gold fell below the previous week's low.

Last week, there were not many economic data, and the market changes were mainly driven by the dismantling of positions. Later, in order to calm the market sentiment, the Bank of Japan's vice president Tian Zhen said that Japan would not raise interest rates when the market was unstable. The tide of opening positions immediately closed, and the gold stock market recovered the lost ground on Black Monday. The price of gold only fell by $13 for the whole week, but the fluctuation was nearly $100.

The market began to focus on this week's inflation data. After the CPI was released in the past six months, gold climbed. The reason was that inflation was gradually under control, and the market began to boldly predict that inflation would no longer hinder the Fed's interest rate reduction process. The latest interest rate futures showed that the United States would definitely cut interest rates in September. The difference was whether to cut interest rates by half a percentage point or by a quarter. If inflation falls further this week, it is expected that the gold price will improve again without holding it. The market situation is a bit different, so let's refer to each other.