EUR/USD
1.16358
0.034%
Gold
4515.96
0.188%
Oil
91.576
-0.943%
USD/JPY
159.256
-0.021%
GBP/USD
1.34511
0.033%
GBP/JPY
214.222
0.015%
Real-time News
The Peoples Bank of China (PBOC) announced today that it conducted 177.6 billion yuan of 7-day reverse repurchase operations, with both the bid and winning bids amounting to 177.6 billion yuan. The operating rate was 1.40%, unchanged from the previous rate.On May 27, according to the Korean Central News Agency (KCNA), the North Korean Missile Administration and the Academy of National Defense Science conducted tests on a lightweight multi-purpose missile launch system and a multiple launcher tactical cruise missile weapon system on May 26. North Korean leader Kim Jong Un observed the tests.On May 27th, CICC Wealth Futures stated that the current gold price movement is highly correlated with liquidity pressure levels. This means that as liquidity pressure escalates, traditional hedging logic can undergo drastic changes or even become ineffective. Under extreme pressure, golds nature shifts from a "safe-haven asset" to a "highly liquid asset," typically involving margin calls and cross-asset risk parity adjustments. Similar liquidity shocks to gold were observed in 2008, 2020, and the "Wash trade" earlier this year. Currently, factors such as oil prices and US Treasury bonds continue to exert significant pressure on gold; a wait-and-see approach is recommended.On May 27th, renewed geopolitical tensions between the US and Iran dampened market risk appetite. Rising oil prices reignited inflation concerns and strengthened market bets on a Fed rate hike this year, dragging down silver prices. On one hand, US economic data remains resilient. The latest Chicago Fed National Activity Index for April was 0.14, significantly better than the previous reading of -0.15. The US Conference Board Consumer Confidence Index and Current Situation Index for May both declined slightly from their previous readings, but the confidence index was still better than market expectations. Coupled with renewed tensions between the US and Iran pushing up oil prices, this has fueled market concerns about inflation, strengthening market pricing in a Fed rate hike by the end of the year. On the other hand, the spot market for silver remains weak, with London silver leasing rates continuing to operate at low levels. Silver is expected to remain volatile in the short term, with overall market activity remaining low. Attention should be paid to the progress of US-Iran negotiations and the resumption of navigation in the Strait of Hormuz. If US-Iran negotiations proceed smoothly, it could lead to a short-term rebound in silver prices, but interest rate expectations continue to suppress the overall trend. If geopolitical tensions escalate again and push up oil prices, we need to be wary of further suppression of the elasticity of silver industrial commodities in the medium term and potential supply disruptions. In the long term, weakening dollar credibility, safe-haven demand, and investment demand provide solid support for silver prices.On May 27th, Mizuho CEO Kihara stated in another interview that a significant interest rate hike by the Bank of Japan would be more beneficial to the Japanese bond market. Kihara said he expects the central bank to raise rates in June or July to combat inflation. He said that regardless of whether the central bank raises rates, unless the increase is substantial, it is unlikely to have a significant impact on the market. "If they go bold" and raise rates by 50 basis points, "that could be more beneficial to the bond market," he said. When asked if the central bank is lagging behind the yield curve, Kihara said it was a "tricky question. I think a little."
