After two consecutive weeks of rising, the gold market plummeted last week, falling more than $50/ounce throughout the week, losing to $1,650/ounce. After the opening of this week, the price of international gold continued to be sluggish, fluctuating around US$1,650. An investment analyst said that after last week, gold prices not only ended their previous two consecutive weeks of upward trend, but also fell below the two important support of $1,700/ounce and $1,650/ounce, they need to return to above $1,670/ounce to get rid of bearish pressure. As of 11:30 Beijing time on October 17, the price of international spot gold has not yet reached US$1,650 per ounce. Beijing Youth Daily reporter noticed that due to the sharp fluctuations in international gold prices, the prices of gold jewelry in the domestic market have also reacted significantly. Taking the Beijing market as an example, the price of gold jewelry has been adjusted five times since October.
Last Friday, international spot gold ended its full-week trading at $1643.66/ounce, down $22.43 on the day, a drop of 1.35%, and hit a low of $1640.04/ounce intraday. So far, gold prices plummeted by $50.95 last week, a drop of 3.01%. In the previous two months, gold price trend closed a considerable positive line .
Last week's sudden plunge in gold in the second half of the week was mainly due to the rise in US inflation and core inflation data in September, which led to speculation that Fed will once again raise interest rates. The U.S. consumer price index (CPI) rose 8.2% year-on-year in September, an increase of 8.1% higher than expected. The 4-year rate of core CPIhtml in the United States rose by 6.6% in September, an increase of 6.5% higher than expected, setting the largest increase since August 1982. According to the minutes of the September Federal Open Market Committee (FOMC) meeting released by the Federal Reserve, the Federal Reserve may raise interest rates by 75 basis points and 50 basis points respectively at its November and December meetings. Among them, the "75 basis points rate hike on November 2" has been generally believed to be inevitable by the outside world. The continued interest rate hike in the US dollar has been spurring the index of to rise strongly, thus suppressing the gold price denominated in US dollars. Affected by this, the gold market suffered a crazy selling last week, with gold prices hitting the biggest drop since mid-August this year.
According to the results of the Kitco Golden Weekly Survey, Wall Street is currently extremely pessimistic about the gold price this week. Of the nine analysts involved in the survey, seven expected gold prices to continue to fall this week, with only two optimistic. The Chicago Mercantile Exchange (CME) Fed observation tool shows that the reason why the dollar remains near its 20-year high is that the market expects the probability of raising interest rates by another 75 basis points in November is 99.7%, and the probability of raising interest rates by another 50 basis points in December is 74%. There may be a series of smaller rate hikes in February and March next year.
was affected by the sharp fluctuations in international gold prices, and the domestic gold market also fluctuated significantly. A reporter from Beijing Youth Daily learned from many mainstream gold stores in Beijing that since the first half of October, the price of gold jewelry has been adjusted 5 times. Taking the full gold 999 jewelry as an example - on October 4, each gram was raised by 9 yuan to 498 yuan/gram; on October 5, each gram was raised by 8 yuan to 506 yuan/gram; on October 8, each gram was lowered by 8 yuan to 498 yuan/gram; on October 11, each gram was lowered by 3 yuan to 495 yuan/gram; on October 15, each gram was lowered by 3 yuan to 492 yuan/gram.
text/Beijing Youth Daily reporter Zhang Qin
edit/tianye
