Weekly

January 27 th

Today's volatility range:

The Federal Reserve's interest rate meeting for two consecutive days has been held since last night, and the results will be announced in the early morning of Thursday. Investors have become more cautious, although the market expects the Fed to release pigeons and keep the current interest rate unchanged.

However, the speeches of Fed officials after the meeting may affect market sentiment. For the time being, the price of gold is still subject to the resistance level of $1864 per ounce, and it is expected that this week, it will still be held between 1838 and 1883. It will still fluctuate today,

The suggested volatility is between $1842 and $1855.

According to the latest World Economic Outlook published by the International Monetary Fund, the growth rate of the global economy is expected to rebound to 5.5% in 2021, among which China's economy is expected to perform best, with an increase of 8.1%.

In developed countries, the United States is the best performer, with an expected growth rate of 5.5%, followed by the United Kingdom and the Eurozone, with an expected growth rate of 4.5% and 4.2% respectively. In the same report made by IMF in October last year, it was predicted that the global economy would be 5.2% this year.

As explained in the report, since many countries have published the fourth quarter GDP, the statistics are generally better than expected, which is one of the reasons for the IMF to revise the figures. The most important thing is that since December last year,

A number of vaccines developed by pharmaceutical companies have been approved for marketing, and most advanced economies have started vaccination programs, which will help ignite people's hope that the epidemic will eventually pass and rejoin normal social life and economic activities.

IMF concluded that although the loss of human life caused by the epidemic is huge and increasing, with the passage of time, economic activities seem to be adjusting, and the world is gradually adapting to the post-epidemic situation of reducing social contact and increasing awareness of personal health protection.

Finally, countries (especially the United States and Japan) announced more policies and measures at the end of 2020, which are expected to provide more support for global economic growth in 2021-2022. But the IMF also warned that,

When the economic stimulus measures taken during the epidemic period are cancelled, there may be more bankruptcy cases in the world, which may lead to the impact of the fragile banking system, because the debt level of many countries has reached the highest level in history.

Therefore, for all countries, they should ensure that they have a transitional plan to keep their debts stable, and they should not cancel quantitative easing too early. European and American stock markets have seen each other's honor and disgrace. Major European stock markets rose across the board. Germany's DAX index rose by 1.66%.

The French CAC index rose by 0.94%, while the British FTSE 100 index rose by 0.21%; The three major indexes of new york stock market fell across the board, with Dow Jones index and Nasdaq index falling by 0.07%; The Standard & Poor's Index fell by 0.15%.

Investors turned cautious before the Federal Reserve announced the results of the policy meeting. After the opening of the market in Asia, the gold price gradually declined, and the volatility increased when entering the European market. In a short time, the gold price was at the same high and low level on the same day as the test, with the lowest reaching $1,848 per ounce.

The highest rose to $1862 per ounce, which was obviously subject to the resistance level of $1864, and finally closed at $1851 per ounce, down by $5.

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