On Friday (July 1), the international gold price fell below the important psychological mark of US$1,800, hitting a new low of US$1,795.04 per ounce since May 16. As major central banks adopted radical monetary policies and the US dollar rose, the value of gold was weakened. attraction. But the market is also developing a view that the worst may be over for the gold market.
As international gold continues to fall, and has fallen below the important mark of 1,800 US dollars, domestic gold generally fell sharply today. The price of gold in mainstream domestic gold stores has fallen below 510 yuan/gram, and the price of gold in Caibai has even dropped to 502 yuan per gram. This is the gold price quoted by the gold store’s official website today, for reference only:
Today’s gold store gold price list (July 1, 2022) | ||||
Gold store quotation | Today’s gold price | Unit | Range of change | Increase or decrease |
old temple gold Price | 505 | yuan/gram | 3 | down |
Luk Fook gold price | 507 | yuan/gram | 2 | down |
Chow Tai Fook gold price | 507 | yuan/gram | 2 | drop |
Saturday Fook gold price | 508 | yuan/gram | 2 0 | down |
gold supreme gold price | 507 | yuan/gram | 2 | Fall |
Laofengxiang gold price | 508 | yuan/gram | 3 | fall |
Chao Acer gold price | 507 | yuan/gram 0 | 2 | down |
Chow Sang Sang gold price | 505 | yuan/gram | 4 | down |
Caibai gold price | 502 | yuan/gram | 3 | down |
China gold price | 505 | yuan/gram | 5 | down |
zhou Dasheng gold price | 507 | yuan/gram | 3 | down |
At 14:55 Beijing time, spot gold fell 0.57% to US$1,796.99 per ounce; the main COMEX gold futures contract fell 0.56% to US$1,797.2 per ounce; US$ Index rose 0.21% to 104.908.
Economists at TD Securities reported: "While gold prices remain under pressure despite the growing likelihood of a recession, in stark contrast, recent gold price action has shown that safe-haven inflows have supported the yellow metal. Over the past month , the gold price is completely out of touch with the market pricing of Fed interest rate hike . On the contrary, the relationship between gold price and the US dollar has strengthened, which shows that the scale of gold's special flows has become smaller, and the liquidity of the global market is drying up, and gold flows are not immune. ”
Stephen Innes, managing partner of SPI Asset Management, said that as the Federal Reserve accelerated interest rate increases and the dollar remained strong, gold caught up with the downward trend... But after the economic recession hits, the central bank needs to relax policy, and the gold price will be possible. There is a rebound.
U.S. inflation data in May hit a new high in nearly four decades, prompting the Federal Reserve to hike interest rates again next month. There is little suspense, but the market is indeed forming a view that the worst period for inflation may be over.
Rick Rule, a prominent investment adviser who was the president and CEO of Sprott US Holdings Inc. and now runs Rule Investment Media, said the Fed can control inflation by significantly tightening monetary policy for a period of time, but when the economy starts to collapse, He believes the central bank does not have the wherewithal to follow suit.
Rule states that the Fed cannot raise interest rates close to free market levels because doing so would increase interest payments for heavily indebted consumers, businesses and the federal government to unsustainable levels.
Powell continues to insist that the central bank can achieve a "soft landing" for the economy while curbing inflation, but that commitment appears questionable. Rule implies that we need a recession to clear out any maldistribution or distortions in the economy, but that means a lot of pain.
Goldman Sachs cited recession concerns and continued inflation as reasons to be bullish on gold, which is expected to rise sharply before the end of the year, raising its target price to $2,500 an ounce. The Fed will raise interest rates enough to burst the bubble and collapse the economy, which could lead to a pause in price increases, but the central bank may shift back to rate cuts and quantitative easing, which would mean higher long-term inflationary pressures.
