International gold price trend, trading mt4 MT5 foreign exchange news in one hand

On Wednesday (June 8), the international gold price fell slightly, as the rise in US dollar and US bond yields Limited gold demand. Investors are waiting for the upcoming U.S. inflation data to further study and judge the prospect of the Federal Reserve raising interest rates. However, the risk of stagflation should continue to encourage many investors to allocate gold.

At 15:24 Beijing time, spot gold fell 0.29% to US $1846.63 / ounce; COMEX gold futures contract fell 0.17% to $1848.9 / ounce; The dollar index rose 0.25% to 102.603.

Edward Meir, an analyst at ed&f man capital markets, said, "gold has been trading sideways in the past few weeks. I think the reason is that people may be optimistic about some inflation data... Inflation may be approaching its peak... If inflation tends to stabilize, it is not conducive to the rise of gold."

U.S. Treasury Secretary Yellen told senators on Tuesday (June 7) that the current inflation level in the United States was "unacceptable". She expected inflation to remain high, and the Biden administration may raise its inflation forecast for this year in its budget proposal. Although she hopes very much that the rise in prices will soon begin to subside.

The rise of gold was largely limited by the tightening of monetary policy by central banks around the world. Investors are now waiting for the core consumer price index (CPI) to be released on Friday (June 10). The market expects that the overall and core CPI of the United States in May are expected to rise by 8.3% and 5.9% year-on-year respectively, and the prospect of aggressive interest rate hikes by the Federal Reserve is difficult to shake.

As borrowing costs rise, American consumers who are highly dependent on credit cards may face challenges. Tim Quinlan, an economist at Wells Fargo, said, "although credit can help support current spending, the cost may be at the expense of future household financial health."

According to Rabobank economists, the United States may not fall into recession this year. However, the economic recession in 2023 seems inevitable. "Either exogenous supply shocks will reduce business activities, or the Fed's response to continued high inflation will play a role.

The timing of the recession will depend on whether it is caused by exogenous or endogenous factors. Given the current strong employment, consumption and investment, we believe that endogenous growth will be decisive. This means that the recession in 2023 is more likely than that in 2022. "

Neil Meader, head of precious metals at metals focus, said, "as the U.S. economy slows and inflation remains high, the risk of stagflation is increasing, and other systemic risks are everywhere. This should continue to encourage many investors to allocate gold, especially when the gold price is corrected and bargain hunting is encouraged. "

On Tuesday, the world bank lowered its global economic growth forecast for 2022 to 2.9% from 4.1% in January. President David Malpass said that the risk of stagflation and the war between Russia and Ukraine have been hitting economic growth. For many countries, economic recession will be inevitable. Meanwhile, although global inflation is expected to moderate next year, inflation in many economies is likely to remain above target.