overnight, spot gold rose slightly by $0.64, reaching a high of $1664.79 in the day and a low of $1641.30, and finally closing at $1660.41. In the early trading of today's Asian market, gold suddenly rose sharply and broke through $1,670, and is currently hovering around $1,672.
The sharp rise in gold is still related to US dollar index . Just now, the short-term decline of the US dollar index gave gold prices an opportunity to rise.
. When gold rose sharply, overnight, the three major indexes of US stocks collectively fell sharply.
European and American stock markets collapsed again
The day before (Wednesday), affected by the dovish speeches of Feder officials and the Bank of England's announcement of "unlimited" long-term bonds " rescue ", market confidence was significantly boosted, and the US stock market generally rose.
However, judging from the market performance on Thursday, the measures taken by the Bank of England have gradually dissipated. As of the close, the Dow Jones Industrial Average fell 458.13 points, or 1.54%, to 29,225.61 points; the Nasdaq fell 314.13 points, or 2.84%, to 10,737.51 points; the S&P 500 fell 78.57 points, or 2.11%, to 3,640.47 points.
This is mainly due to the number of initial unemployment claims released overnight in , recording 193,000, far lower than market expectations, and the number of people who renewed unemployment claims was 1.347 million. This supports the Fed's view that the labor market is still quite strong and there is more work to be done on monetary policy .
After this news was announced, the US dollar index rose 27 points in the short term, while the US stock index plunged across the board.
At this moment, offshore RMB suddenly soared, and the RMB against the US dollar rose to 860 points in a very short period of time. From the highest point of the US dollar against the RMB that day, in just four hours, the RMB soared by 1,000 points, and the maximum intraday rebound rate also exceeded 1,100 points . Since the short-term high set on the 28th, the largest surge in the RMB is to 1,600 points or more .
It is worth mentioning that overnight Fed officials reiterated that they will continue to raise interest rates to curb unacceptable high inflation, and that the market has now understood this information.
In addition, investors need to pay attention to the development of news about the situation in Russia and Ukraine.
"North Stream" storm is getting worse and worse
"North Stream" natural gas pipeline leaked, completely igniting the international public opinion situation.
The "Northern Stream" natural gas pipeline explosion accident is continuing to escalate, and the statements of various countries are arousing global attention. On September 28 local time, the Russian Attorney General's Office said in a statement that it had filed a case against the "terrorist" act of damage to the "North Stream" natural gas pipeline. The US side said that it is ridiculous to think that the US has somehow participated in the deliberate destruction of the "North Stream" natural gas pipeline. In addition, United Nations Security Council will hold a meeting on the 30th to discuss the possible leakage of the "North Stream" natural gas pipeline due to damage .
It is worth mentioning that the three damaged pipelines will likely no longer be put into use . In addition, the "North Stream" natural gas pipeline explosion has once again exacerbated tensions in Europe, and Norway will deploy troops to protect oil and gas facilities. For Germany and other countries, means the final thought of . Natural gas from Russia used to account for more than 40% of European natural gas supply. Now, winter is approaching, and it is impossible for to get natural gas from Russia in the short term.
In addition, EU , the United States and other Western countries are planning a new round of sanctions against Russia . On September 29, local time, London Metal Exchange is planning to discuss deleting Russian metals such as aluminum, nickel and copper from its list of deliverables. Industry insiders warned that any ban on could have a significant impact on the global metal market , as Russia is the main producer of aluminum, nickel and copper.In addition, European Commission President von der Leyen announced the eighth round of sanctions against Russia, which will completely ban the sales of Russian goods in the EU market.
In fact, as for the moment, there will be no more room in the Ukrainian battlefield. On the one hand, four more states have joined Russia in referendums. On the other hand, the United States has also used extraordinary means, that is, to tear the face. In Ukraine's war, it is a ruthless move, and the victory or defeat is decided on the battlefield.
How to move forward in the future?
Economists at TD Securities predict that "In October, as the key labor and inflation data before the Fed's next meeting is about to be released, the risk of gold falling again remains widespread. As gold prices are below the level during the COVID-19 pandemic, real interest rates and the US dollar soar, and funds management companies and ETF holdings funds continue to flow out. A few family financial offices and proprietary trading institutions are increasingly feeling pressure and ultimately have to give up their over-inflated positions."
Picture source: Jintou.com
From a technical perspective, gold prices are trading above the 50-cycle index moving average (EMA), which supports bullish expectations. It should be considered that if gold prices fall below $1,660.00 and $1,648.00, this will stop the expected uptrend and push gold prices back to the main bearish track.
Today's gold price trading will be between support level 1645.00 and resistance level 1686.00. Today's expected trend for gold prices is bullish.
