1. Decline in US inflation and expectations of a Fed rate cut
Inflation decline:
According to recent economic data and market expectations, the US inflation rate is gradually falling, mainly due to the tight monetary policy previously adopted by the Federal Reserve and changes in the global economic situation.
The decline in inflation will help ease consumers' economic pressure, increase their purchasing power, and thus promote stable economic growth.
Fed rate cut expectations:
As inflation falls, the market generally expects the Fed to start cutting interest rates in the near future. This expectation is mainly based on two considerations: first, the fall in inflation makes it possible for the Fed to cut interest rates to stimulate economic growth; second, the uncertainty of the global economic situation has increased, and the Fed needs to cut interest rates to deal with possible economic risks.
According to the forecasts of some economic analysis agencies, the Federal Reserve may start to cut interest rates in July 2024 and may cut interest rates several times in the future. This forecast has an important impact on the financial market, and investors need to pay close attention to relevant developments.
2. Gold price stability
Current gold price situation:
In the current market environment, the price of gold remains relatively stable. This is mainly due to the attribute of gold as a safe-haven asset. Against the backdrop of increasing uncertainty in the global economic situation, investors tend to buy gold to avoid risks.
According to the latest data (as of July 1, 2024), the prices of some major gold brands are as follows: Chow Tai Fook's gold price is 715 yuan/gram, Lao Fengxiang's gold price is 714 yuan/gram, and Zhou Liufu, Chow Tai Seng, Chow Sang Sang and other brands' gold prices are also at similar levels. These prices have fluctuated compared to the previous period, but overall they remain relatively stable.
Factors that affect the price of gold:
In addition to the uncertainty of the global economic situation, factors affecting gold prices include the US dollar exchange rate, inflation rate, interest rate level, etc. Against the backdrop of a relatively stable US dollar exchange rate, falling inflation rate, and a possible reduction in interest rates, gold prices are expected to remain stable or rise.
Future Outlook:
Against the backdrop of rising expectations of a rate cut by the Federal Reserve, gold prices may be boosted to a certain extent. However, due to various uncertainties in the market, investors need to be cautious about gold investment. When making investment decisions, investors should fully consider their own risk tolerance and investment goals, and pay close attention to changes in market dynamics and economic data.
In short, the decline in US inflation boosted expectations of a Fed rate cut, while gold prices remained stable.
