This is the fifth rate hike this year and the third consecutive rate hike of 75 basis points, the largest intensive rate hike since 1981, but the US inflation level has not yet seen a significant decline.

Today’s guest: Gold investment analyst Wu Di

In terms of fundamentals, in the early morning of this morning, the Federal Reserve announced a hike of 675 basis points, raising the interest rate target range to between 3% and 3.25%, in line with market expectations. This is the fifth rate hike this year and the third consecutive rate hike of 75 basis points, the largest intensive rate hike since 1981, but the US inflation level has not yet seen a significant decline.

The Fed's dot chart this time is more hawkish than market expectations. Most officials expect that a 125 basis point rate hike will be raised by the end of this year, and the possibility of another 75 basis points in November will be put on the table. After the Fed interest rate meeting ended and the interest rate resolution was announced, Fed Chairman Powell held a press conference. Powell repeatedly expressed his determination to control inflation. He said that higher interest rates, slow economic growth, and weaker labor market are all unfavorable to the public, but they are not as painful as not restoring price stability. The Fed has many policy tools to restore price stability. In addition, he reiterated that the extent of interest rate hikes will depend on future data and may slow down the rate hikes at some time node to assess the impact of interest rate hikes/sustainment policies.

From a technical perspective, the highest upward test of gold prices this week's long-shoulder watershed was $1,689/ounce, but it failed to form an effective breakthrough. The gold price then plunged sharply to below $1,670/ounce, indicating that the overall trend is still bearish, and the resistance continues to focus around $1,689/ounce. If it can break through this position, it can alleviate downward pressure. In terms of support, we will continue to pay attention to the strength around $1,643/ounce. If it falls below this position, support will be adjusted to around $1,608/ounce. At present, gold prices are in a weak oscillation, and there is no risk of continuing to break downward. Strict stop loss when trading at the position. All the above suggestions are personal opinions and are for reference only.