Jinwu Financial News | Gold stocks rose collectively. Lingbao Gold (03330) rose 9.76%, Zijin Mining (02899) rose 6.3%, China Gold International (02099) rose 6.11%, Zhaojin Mining (01818) rose 6.07%, and Shandong Gold (01787) rose 4.09%.
Guotai Junan said that the US CPI in April was 3.4% year-on-year, in line with expectations, slightly lower than the previous value of 3.5%, and the core CPI was 3.6% year-on-year, in line with expectations, lower than the previous value of 3.8%, and inflationary pressure eased somewhat. Meanwhile, retail sales in the US in April were 0% month-on-month, lower than expected and previous values, and consumption showed signs of relaxation. Market interest rate cuts are heating up. According to CME, the probability that the Federal Reserve will cut interest rates in September as of May 18 is 0.4 pct to 49% higher than last week, driving up precious metals prices. However, Federal Reserve officials have recently expressed hawkish views one after another. Powell said that interest rate cuts will have to wait for more evidence of “high interest rates to curb inflation.” However, the resilience of the US economy is declining. According to the San Francisco Federal Reserve, US residents' excess savings were basically exhausted in March. Consumption data for April was weak, and employment data also showed relaxation. High interest rates have been maintained for too long, making it more difficult for the economy to land softly, and even intensifying the exposure of the crisis. Against this background, gold and silver will perform well. Furthermore, the global geopolitical landscape is in turmoil. On May 17, Israel “rarely” carried out air raids on the West Bank. Lebanon claimed that two southern villages and towns were attacked by the Israeli army. The Russian-Ukrainian conflict continued, and risk aversion may have boosted the price of gold.