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Against this backdrop, the gold market is at a critical juncture. The interplay between monetary policy, economic data, and market sentiment will continue to influence the trajectory of gold prices. If the Federal Reserve adopts a dovish stance in its upcoming policy statement and hints at a rate cut in September, this could drive down the US dollar and help gold rebound. Furthermore, the recent cracks in the European economy may prompt the European Central Bank to also cut rates in September, w
Global Market Insights: Key Economic Events and Their Impact
On Wall Street, the AI frenzy continued to weigh on the U.S. equity market, with mega-cap tech stocks plunging and leading the Nasdaq to close more than 200 points lower, hitting its lowest level since June.
The USD/JPY pair hovers around 152.50, just above a three-month low, as traders anticipate the Bank of Japan's policy decision, expecting a 10-basis-point rate hike and bond-buying tapering, which supports the Yen. A slight recovery in the US Dollar has paused the pair's rise, with the Dollar Index near 104.50 ahead of the Federal Reserve's meeting, where rates are expected to stay unchanged but with dovish guidance.
Market Review | July 31, 2024
Market Review | July 31, 2024
GTCFX Successfully Concludes Trading Summit in Taiyuan, Clients Enthusiastic
Gold prices are on the rise, driven by geopolitical tensions in the Middle East, falling U.S. Treasury yields, and anticipation of Federal Reserve rate cuts. Prices are holding near the $2,400 mark, supported by favorable U.S. inflation data. The market is closely watching upcoming key economic data and the Fed's meeting, with expectations of policy changes influencing gold's appeal as a safe-haven asset. Higher-than-expected inflation in the UK and Eurozone could boost demand for gold, while U.
Asian stocks declined as investors anticipate major central bank decisions, key economic data, and U.S. tech earnings. Markets in Australia, South Korea, Japan, Hong Kong, and mainland China fell, with U.S. futures also dropping. The dollar strengthened against major currencies, while the yen approached a 12-week high before the Bank of Japan's policy announcement.
In the past few weeks, the global market has been filled with uncertainty, coupled with obvious political turmoil, which may also exacerbate the situation. The yen has regained its halo as a safe-haven currency, which many people thought had long disappeared. This makes risk assets more susceptible to concerns about the Federal Reserve's shift to a loose policy, indicating that the U.S. economy may face a severe slowdown, and the economy will "land," which may be a hard landing rather than a sof
Fed officials have indicated they are prepared to cut interest rates if necessary, though there is no immediate need. This dovish stance has been viewed positively by the markets, leading to increased buying pressure on gold. Despite ongoing inflationary risks, market expectations of a rate cut in June have risen to 66.3% (up 3% since the PCE release). Lower interest rates could enhance the appeal of non-yielding gold.
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Market Review | July 30, 2024
Market Review | July 30, 2024
GTCFX Chief Analyst Jameel Ahmad: Monitoring US Rate Cut Timing and Geopolitical Risks
Market Review | July 29, 2024
Market Review | July 29, 2024
Nick Timiraos, the spokesperson for the Federal Reserve, stated that although Fed officials are unlikely to cut interest rates in July
The U.S. economic policy has always been a focal point in the global economic arena. Recently, the firm stance of U.S. Treasury Secretary Janet Yellen, the critical voice of former President Donald Trump, and market expectations for the Federal Reserve's monetary policy have painted a complex picture of economic policy.
This week's key economic events include German retail sales, M3 money supply in South Africa, retail sales in Switzerland, and key rate decisions from the Federal Reserve and the Bank of England. The U.S. will also release its Nonfarm Payrolls, unemployment rate, and ISM Manufacturing PMI. These events are crucial for gauging economic health and guiding currency valuations.