Federal hike rate . International gold prices plummeted, plunging $20, and are now near $1,637.5 per ounce. Some people may be tempted, so can they take the opportunity to buy at the bottom and find a bargain in ? Let’s watch today’s video first and then make a decision.
Gold price has been manipulated by Americans, and this rate hike will definitely not be the last time. Now that you buy gold at the bottom, the price of gold may continue to fall. So when will you be able to get out of the trap? No one knows.
This rate hike is the sixth time the Federal Reserve has raised interest rates this year. The benchmark rate of has been raised by 75 basis points, reaching between 3.75% and 4%. This is also the first time the Federal Reserve has raised interest rates by 75 basis points in four consecutive times.
The Federal Reserve's interest rate hike this time still does not change its original intention and insists on reducing the inflation rate below 2%. Now the inflation in the United States is still at a high of 8.2%, and the public is becoming more and more dissatisfied with the government. When will the round of interest rate hikes be effective? Fed officials have already admitted that the decline in inflation is slower than expected.
However, in this statement of Fed's interest rate hike, there are two more words that have not been seen before: the target range for continuing to increase the benchmark loan interest rate will be appropriate, but the lag of monetary policy will also be considered. Some people think that is a hint that the day of aggressive interest rate hikes is coming to an end? The price of gold rose slightly at this time, $1,665 per ounce.
Then Fed Chairman Powell came forward and said that although it is not ruled out that he would consider slowing down interest rate hikes next month, there is basically no chance to suspend interest rate hikes. As soon as the words came, the US stock avalanches and gold also fell. This is also very consistent with the overall trend of gold being suppressed by the US dollar this year. The Federal Reserve raised interest rates, and the yield on the US Treasury bonds rose. Investors from all walks of life sold gold and invested money on US dollar assets.
gold's risk aversion attribute has not changed, but it is very difficult to see the effect in just a few months or even years. Only when you extend the time to a longer time than any investment cycle can you clearly see how this gold avoids risks.
In 1970, the Bretton Woods system began to collapse. The international gold price of is $38 per ounce, and now it is $1,637 per ounce, up more than 40 times. In this case, the annualized yield of gold is about 8%. The annualized yield of stocks in the United States in 200 years was 6.7%, and inflation was only 8% ( US Wharton data). Compared with the two, it is enough to show that the gold will remain unmoved and it will indeed maintain its value and appreciate.
However, in recent years, gold prices have been greatly affected by investor sentiment, and Chinese aunts have contributed to the classic battle in 2013.
At that time, in 2013, Wall Street giants built a year of momentum and began to short gold. In April and June that year, international gold prices plummeted twice, reaching the ounce of $1,200 per ounce. The Chinese aunts came to buy at the bottom after hearing the news and spent 100 billion yuan to sweep away 300 tons of gold. No matter how much gold Wall Street sells, Chinese aunts will come without rejection, forcing the world's top 500 Wall Street tycoon Goldman Sachs Group to take the lead in raising the white flag to admit defeat.
After the Chinese aunt fights Wall Street, the international gold price hovered for a long time in the line of $1,200 to $1,300 per ounce, and it fell to just over $1,000 per ounce in 2016. According to market estimates, the cost of "building a position" for Chinese aunts to sweep goods was $1,350 to $1,400 per ounce, so the aunts were trapped at that time. It was not until 2019 that the international gold price returned to $1,400 per ounce, and at this time it gradually rebounded, and the aunts also had the opportunity to sell gold. If an aunt insisted on taking action until now, she could even make another profit.
However, this does not mean calling on everyone to buy gold at the bottom now. Judging from the situation where the US dollar continues to strengthen and gold decline this year, the price of gold is not yet at the end, and once you are trapped, it is difficult to predict how long it will be trapped.
After Powell's hawkish speech this time, the dollar index refreshed the high of 7 trading days, the euro refreshed the low of 7 trading days, and the pound also fluctuated downward. Since the Federal Reserve raised interest rates, the strong dollar has been harvesting other non-dollar currencies. Many times, everyone has ignored it. Gold also has certain monetary functions, so it is natural that it is reasonable to be harvested by the US dollar.
