Weekly

September 27th.
 
Today's volatility range:

It fell for three consecutive weeks. The Fed will withdraw from the market soon, and once the Fed starts to shrink its table, it will be unfavorable to the future trend of the gold market. However, the U.S. economy is still threatened by the mutant virus, which affects the pace of recovery, especially in terms of employment data.

This puts Fed officials in a dilemma, and the road to raising interest rates may be even further away. On the other hand, the debt crisis of Evergrande Group is heating up, and the demand for safe haven is increasing, which is beneficial to the price of gold. The risk is that the yield of US debt will rise. Gold price is expected to fluctuate next week,

But it rose slightly. Today's suggested volatility is between $1742 and $1755.
 

China's real estate giant Evergrande Group defaulted on its debt, which caused the global stock market to fall on Monday. At least three investors said that they had not received the repayment of the $83 million debt due on Thursday.

Evergrande didn't take the initiative to contact them either, which means Evergrande didn't pay on schedule. Although it has always been the market practice to set a 30-day tolerance period, and the debt will be deemed as default after it is overdue, it depends on the attitude of Beijing government and Evergrande's financial situation.

It's a run, a run, a run. On Friday, Evergrande even warned that its future will be full of uncertainties unless it gets cash injection quickly. Hang Seng Index fell for two weeks in a row and closed down 2.92% last week.

Affected by the explosion of Evergrande, European stocks plummeted on Monday, but Universal Music Group was listed on the Dutch Stock Exchange on its first day, becoming the largest market capitalization company in 2021, rushing to the three major European stock markets, and the Bank of England announced that it would maintain interest rates.

At 0.1%, it also maintained its bond buying scale, and the central bank announced that it would raise its forecast to 4%. The Bank of England explained that since the meeting of the Monetary Policy Committee last month, the recovery rate of global activities has shown signs of slowing down, and commodities.

Against the background of strong demand and continued tight supply, global inflationary pressure remains strong, and there are signs that cost pressure may continue for some time. Finally, the three major European stock indexes developed individually last week and closed in Germany.

DAX index fell 0.27%; The CAC index in Paris, France rose by 1.04%; The FTSE 100 Index rose 1.26%.

 
China Evergrande's debt crisis hit the financial market, and U.S. stocks also fell sharply at the beginning of this week. But before Wednesday's public report by the Federal Open Market Committee, the three major indexes on Wall Street jumped, and Federal Reserve Chairman Powell was more open-minded.

Describing the debt problem of Evergrande Group seems to be unique to mainland China, and the risk of direct impact on the United States is very small, which may only affect the global financial market, especially the confidence of investors. The three major indexes on Wall Street all rose in one week, Dow Jones.

The index rose by 0.62%; The S&P 500 Index rose 0.51%; Nasdaq index rose 0.02% to close. The explosion of Evergrande caused the global stock market to fall, and the VIX index, which reflected the panic in the market, once rose sharply, and investors pulled out of the global stock market.

With the capital flowing into the bond market, the price of 10-year U.S. Treasury bonds rose, and the yield of 10-year Treasury bonds fell, thus boosting the gold price. On Wednesday, the U.S. Open Market Committee did not mention the schedule of debt reduction, but the bitmap showed that the pace of interest rate increase was also accelerating.

The price of gold turned down. Last week, the highest price of gold was $1,787, and the lowest price was $1,741. It closed at $1,750 on Friday, and fell by $4 a week.

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