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The Hang Seng Index in Hong Kong opened on July 4 (Friday) down 169.25 points, or 0.7%, to 23,900.69 points; the Hang Seng Technology Index opened on July 4 (Friday) down 39.38 points, or 0.75%, to 5,194.33 points; the CSI 300 Index opened on July 4 (Friday) down 62.96 points, or 0.73%, to 8,585.48 points; the H-share Index opened on July 4 (Friday) down 0.66 points, or 0.02%, to 4,096.8 points.When the Hong Kong stock market opened, the Hang Seng Index opened down 0.7%, and the Hang Seng Technology Index opened down 0.75%; Xpeng Motors (09868.HK) opened down nearly 2%. Its worlds first L3-level computing AI car, Xpeng G7, was recently launched.July 4th news, on the morning of July 2nd, the National Energy Administration organized a mid-term work meeting for the pilot survey of wind power and photovoltaic power generation resources. Wan Jinsong, member of the Party Leadership Group, deputy director, and leader of the pilot survey work group of wind power and photovoltaic power generation resources of the National Energy Administration, attended the meeting and delivered a speech. The meeting called for accelerating the progress of the work, focusing on the application value of the results, and promoting the high-quality construction of the national new energy system with the results of the high-level survey pilot work. The meeting reviewed and approved the "Technical Guidelines for the Pilot Survey of Wind Power and Photovoltaic Power Generation Resources" and the "Notice on Doing a Good Job in the Management of Regional Wind and Solar Resource Observation Network Data".US President Trump: Possible meeting with Iranian (representatives).On July 4, the South Korean Joint Chiefs of Staff reported that the South Korean military controlled a North Korean person who crossed the military demarcation line on the evening of the 3rd. The South Korean Joint Chiefs of Staff stated that after the South Korean military found the relevant personnel in the area of the military demarcation line in the central and western parts of the country on the evening of the 3rd, they tracked and monitored them, carried out induced operations, and then controlled the relevant personnel. At present, the relevant departments are investigating them. The Joint Chiefs of Staff also stated that as of now, the North Korean army has no special movements.

Gold Falls Below $1,900; The dollar Soars As The Fed Prepares to Double Its Rate Hikes

Charlie Brooks

Apr 26, 2022 09:57

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On Monday's session on the New York Comex, an ounce of the yellow gold returned to the $1,800 level.


This came as the dollar strengthened on expectations that the Federal Reserve would hike rates by 50 basis points, or half a percentage point, at its May policy meeting next week — more than double the 25 basis points, or quarter point, approved in March, the first increase in the post-pandemic era in the United States.


On Monday, Comex front-month gold futures for June finished down $38.30, or 2%, at $1,896 an ounce. On April 18, June gold reached a six-week high of $2,003 on concerns that the US could enter recession as a result of strong Fed attempts to rein down inflation. Gold is frequently used as a hedge against economic and political uncertainty.


Over the last week, a series of Fed speakers assuaged market concerns that the economy would turn negative as a result of the central bank's efforts to contain price pressures developing at their highest rate in 40 years.


While fears of a hard landing have not completely vanished, optimism, particularly regarding the sterling job market, has won over some pessimists. This has resulted in the dollar surging – the primary beneficiary of a rate hike — at the expense of gold and other safe-haven assets.


The Dollar Index, which compares the US currency to six main rivals, touched a 25-month high of 101.745 on Monday.


US bond yields, which frequently move in lockstep with the dollar, have recently decoupled from the greenback. The yield on the US 10-year Treasury note fell for the third consecutive day, dropping about 4% on the day.


While risk aversion across the board drew investors to safe-haven assets, gold's near-term charts showed the possibility of a rebound to the $1,900 lows, at the very least, following the week's loss of more than $100. 


"Gold has begun to exhibit oversold conditions on a daily basis, which may result in a short-term relief rally, albeit not necessarily a reversal," Dixit explained. "The $1,925 to $1,935 level remains a hurdle, but a rebound is probable." If history is any guide, gold will almost certainly find buyers at lower prices."


On the other hand, he noted, a Comex settlement below $1,888 will exacerbate gold's troubles.