Understanding the Market | Gold stocks continue to decline, Powell's testimony is neutral, the strong US dollar suppresses the gold price
Gold stocks continue to decline. As of the time of publication, Lingbao Gold fell by 4.42% to HKD 3.24, Zijin Mining fell by 3.25% to HKD 17.26, China Gold International fell by 2.72% to HKD 51.9, and Shandong Gold fell by 1.3% to HKD 16.66. On the news front, Federal Reserve Chairman Powell acknowledged progress in inflation and a cooling job market, but did not explicitly signal an imminent rate cut. The US dollar index has shown strength, with overnight gold prices briefly falling below $2350 per ounce. Geopolitically, media reports suggest that negotiations on Gaza will take place on Wednesday. The current market is focused on the upcoming US CPI and PPI data releases. Dai Viet Futures reports that the impact of first-half outperformance will dampen the likelihood of further increases in gold and silver prices. Additionally, heightened political risks in the second half of the year will bring more uncertainty, with gold and silver prices mostly expected to rise during the US election period. Furthermore, there is a possibility of easing tensions in the Middle East and between Russia and Ukraine, which could have a significant impact on gold and silver prices
According to the Wise Finance app, gold stocks continue to decline. As of the time of publication, Lingbao Gold (03330) fell by 4.42% to HKD 3.24; Zijin Mining (02899) fell by 3.25% to HKD 17.26; China Gold International (02099) fell by 2.72% to HKD 51.9; Shandong Gold (01787) fell by 1.3% to HKD 16.66.
On the news front, Federal Reserve Chairman Powell acknowledged progress in inflation and a cooling job market, but did not clearly signal an imminent rate cut. The US dollar index showed a bias towards strength, with overnight gold prices briefly falling below $2350 per ounce. Geopolitically, media reports suggest that negotiators in Gaza will hold a meeting on Wednesday. The current market is focused on the upcoming US CPI and PPI data releases.
Davos Futures reports that the impact of the first-half sprint factor will hinder the possibility of further rises in gold and silver prices. Additionally, the second half of the year, marked by heightened political risks, will bring more uncertainty. During the US election period, gold and silver prices are expected to mostly rise. Furthermore, there is a possibility of easing tensions in the Middle East and the Russia-Ukraine conflict, which could have a significant impact on gold and silver prices