On May 23, COMEX gold closed at $2404.80 per ounce, a decrease of 1.81%; domestic SHFE gold closed at 561.00 yuan/gram at night, a decrease of 1.85%.
Overnight, the minutes of the Federal Reserve's May monetary policy meeting were released. The minutes of the meeting showed that most officials were disappointed with the inflation performance in the first quarter, believing that the recent rise in inflation was relatively widespread, so it should not be overestimated. Officials said that if inflation is to fall further to the target range of 2%, high interest rates will need to be maintained for a longer period of time. Furthermore, officials have doubts about the restrictive effect of current monetary policy. Most officials may believe that interest rate hike arrangements are not out of reach, and indicate that they are willing to tighten policy when needed. After the minutes of the meeting came to fruition, traders reduced their bets that the Federal Reserve would cut interest rates more than once this year. According to the Federal Reserve's interest rate futures, the market's bet on cutting interest rates before September is about 59%, which is slightly lower than the level before the minutes were announced; it is believed that the probability of cutting interest rates for the second time before December is 50%, which is lower than 54% before the minutes of the meeting were announced. Taken together, the minutes of the meeting were tough, compounded by the recent continuous eagles of Federal Reserve officials, and the short-term fluctuation and weakening of gold prices, focusing on the support of the geopolitical conflict below the price of gold.
Source: Wind, Jin10 Data, Everbright Futures Research Institute
Writer: Shi Yueming
Professional qualification number: F03097365
Investment Advisory Certificate No.: Z0017563
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