The Fed's "Eagle", but gold loves "pigeons"

In the world of information, there is a simple way: the less the words, the bigger the matter. According to this standard, the Federal Reserve President Powell's speech at the Global Central Bank President Meeting this year has caused the gold market to shock, which is also reasonable.

Powell's speech at the Jackson Hall Global Bank this year was only half of 2021, but the market vibration caused more than doubled in 2021. After he bluntly stated that all the Fed will work hard to suppress inflation, even if this is painful for the economy, it will persist in this way, and the gold price that does not like rising interest rates has fallen by more than 1%.

The Fed's "eagle", but gold loves "pigeons". The differences between the two routes allow gold investors to bear some additional costs. The cost of these gold may come from time, because Powell mentioned the struggle between the Federal Reserve with high inflation, which may slow down employment growth; the cost of these gold may come from price changes, because Powell insisted that it was said that to lower inflation and stop prematurely to stop prematurely stopped and stop prematurely to stop stopping and stop prematurely. The interest rate hike will be made of errors, and the historical records are strongly warned not to relax the policy prematurely.

After the US Federal Reserve raised 75 basis points in July, the gold market had expected that such raptors would not fly too long. White pigeons always brought back the hopes of olive branches, so the price of gold has risen. But now it seems that after two rate hikes 75 basis points, it has now become one of the periods when monetary policy tightens. At present, the Fed really needs higher interest rates to suppress inflation -after all, not every central bank will turn on the bold test of inflation to the Turkish central bank to deal with inflation -because the current US inflation rate is three times the US Fed's 2%goal, which means that this means Falling to the target range will be a longer process, and gold has to be in a friendly currency environment in a long time.

An universal misunderstanding in the market now is that the US interest rates are already at a high level after the fifth and 6th time this year may usher in the fifth and 6th time. But in fact, from a historical perspective, the interest rate only returned from the extreme loose to normal before. Gold has been dancing with much higher interest rates than this for a long time, and has not been abandoned.

In fact, opportunities are hidden in interest rate hikes. At present, the US economy has entered a technological decline. Following the 1.6% in the first quarter, the GDP of the United States in the second quarter of the second quarter decreased by 0.9%. Since the United States has not yet felt the entire impact of interest rate hikes, this also means that after a continuous interest rate hike cycle, monetary policy makers have to re -measure in suppressing inflation and out of the recession.

Although the weight of the former is still greater, it will put continuous pressure on the price of gold, but the wind direction of mutations will soon bring to the oasis in the eyes of pigeons, and that will be the hope of rebound.

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