Weekly

January 28 th

Today's volatility range:

Although the market expects that the Fed will keep the current interest rate unchanged, Fed President Powell will continue to release pigeons and say that he will not collect water early, but the strength of the US dollar will put pressure on the gold price in the short term.

For the time being, the price of gold is still subject to the resistance level of $1,864 per ounce. Yesterday, it fell below the support level of $1,838. Although it rebounded when it fell to $1,832, it may try its low level again today. It is suggested that the volatility should be between $1,828 and $1,848 today.

SARS-CoV-2 is still raging all over the world, and more than 100 million people have been infected globally! Britain has become the fifth country in the world where more than 100,000 COVID-19 patients have died. Prime Minister Johnson, because of the stronger transmission of the British variant virus and the prevention and control of the epidemic,

Announced an extension of the city closure measures until March. Portugal takes the lead in offering sacrifices to immigrants from Britain, and needs to stay in hotels for 10 days for isolation after entry. If the epidemic situation in Britain cannot be improved in the short term, I believe more countries will follow suit. German officials said,

Although the recent German data show that the local economy's ability to resist the pneumonia epidemic in COVID-19 is better than expected, warning SARS-CoV-2 is still a threat and must not be underestimated. Because of the tightening of anti-epidemic social isolation measures for two consecutive months,

It has dealt a greater blow to the retail, catering and tourism industries. The German government has drastically lowered the forecast of local economic growth this year, from 4.4% growth in the third quarter of last year to 3% growth. Major European stock markets fell across the board,

The German DAX index fell 1.76%; French CAC index fell 1.16%; Britain's FTSE 100 index fell by 1.31%.

Earlier, European Central Bank President Lagarde spoke many times and mentioned that the European Central Bank will closely monitor the euro exchange rate. Seeing that the euro continues to appreciate in spite of the epidemic, Crash Hanguz, a member of the management Committee of the European Central Bank and also the governor of the Dutch central bank, exported,

It remains to be proved that the central bank has tools such as interest rate cuts to prevent further appreciation of the euro, and whether it will really cut interest rates again, but the remarks are explosive enough, and the euro went down yesterday. The U.S. Federal Reserve announced the results of the Biden administration's first interest rate decision early this morning.

As expected by the market, keep the interest rate unchanged from 0% to 0.25%, and keep the scale of quantitative easing unchanged, that is, continue to buy at least US$ 80 billion treasury bonds and US$ 40 billion secured bonds every month until it can stimulate the US economy.

Achieve the maximum employment level and stabilize inflation at 2%. After the meeting, Federal Reserve Chairman Powell continued to release pigeons, saying that it is still too early to talk about reducing the scale of buying bond assets, and that it will take some time for the US economy to grow in real terms.

The economic outlook is still highly uncertain because of the epidemic or the delay of comprehensive economic recovery, and the Federal Reserve will use all tools to support the economy. Although the market expects the Fed to continue to release pigeons, venture capitalists take advantage of high arbitrage.

As soon as the US stock market opened, a large number of selling orders emerged. Finally, the three major indexes of the new york stock market fell across the board, and the Dow Jones index fell 2.57%; The Standard & Poor's index fell 2.05%, and the Nasdaq index fell 2.61%. The US dollar rebounded to a high level in the month,

Thanks to the export skills of European Central Bank officials, the euro fell sharply against the US dollar. In addition, vaccination programs around the world lagged behind the outbreak rate, and the demand for safe haven in the US dollar warmed up. The US dollar index was close to 90.7 points, and gold was relatively eclipsed, reaching a maximum of 1854 US dollars per ounce.

The lowest price was $1,831 per ounce, and finally closed at $1,844 per ounce, down $7.

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