The power of the fomc resolution continues to be felt, not only by the collapse of gold, silver and silver, but also by large commodities such as gold, platinum and crude oil。
After the fed suddenly increased interest rates in both categories, the use of reverse buy-back tools rose by 45 per cent from the previous day, reaching $756 billion, a new high。
Gold and silver drop by 4. 7% and silver drops by 7%
After the federal reserve resolution, the gold fell. On thursday, local time, comex gold futures fell by nearly 4. 7 per cent, at a new low since the end of april this year。
Gold has also fallen by over 2 per cent。
The silver also burst. Comex cash futures fell by 7 per cent, breaking $26 per ounce, a new low since 20 april。
Cash and silver dropped nearly 4 per cent。
Ole hansen, director of the bank's commodity strategy, stated that the important question remained whether inflation was a temporary phenomenon or whether it would last longer. The market is now convinced of the fed's judgement that the price of gold and silver may face another round of challenges before the data may prove wrong。
According to jim wyckoff, an analyst in kitco, people looking at the gold and silver markets need to remember that historically, as a hedge against price increases, problematic inflation has been beneficial to these hard assets. In the long run, he tends to believe that rising inflation will drive metal prices up. It is also important to remember that rising inflation and interest rates mean a stronger economy, which means an increase in demand for metals by consumers and businesses. Finally, remember that short-term traders are often fluid. Their focus now is that, after years of efforts by major central banks to create more consumer demand, including for metals, the fed’s loose monetary policy has not been as easy。
Silver group analyst giovanni staunovo: negative views on the future of gold prices are expected to drop to $1,600/ounce over the next 6 to 12 months。
James steel, hsbc’s chief precious metal analyst, stated that, since the fed’s plan showed that interest rates would increase by the end of 2023, gold pressure would fall, but a further sharp drop in gold prices from current levels might not be reasonable, as the fed’s policies remained very liberal, and the increase in us debt yields and the united states dollar might be temporary。
America's gold stock has collapsed
The gold plate also fell sharply, with a 12 per cent drop in the lead concept。
Barrick's gold fell over 6%。
A drop of 12% in large commodities and 7% in platinum
In addition to gold, there was a decline in a wide variety of commodities, and the market for large commodities was green。
The gold futures drop 12%。
7% platinum futures。
The oil fell too。
Ole hansen, director of the bank’s commodity strategy, argued that the strong dollar, lower inflation expectations and lower risk preferences reduced investment preferences for crude oil。
Cdrc: some commodity prices fall in the future or multiple batches of reserves are launched to facilitate the return of prices to reasonable ranges
According to the securities times, on 17 june, the national commission for development reform held a regular press conference in june, during which the press speaker of the national commission for development reform, meng yi, gave a briefing on the approval of electricity distribution and investment projects and responded to questions about the effectiveness of initiatives to deal with large commodity booms, why electricity supply and demand were strained in guangdong and yunnan, and how to attract foreign investment。
Meng yi said that in the coming period, the commission would also work with interested parties, depending on changes in the market, to launch multiple batches at the right time, to increase market supply in a timely manner, to ease the pressure on business costs and to facilitate the return of prices to reasonable zones。
Meng yi said that through a series of initiatives, market speculation had begun to cool down, with commodity prices for some large commodities, such as iron ore, steel and copper, falling to varying degrees. Next, the commission will closely monitor market and price changes, promote a dynamic balance between supply and demand through multi-channel open-source throttles, strengthen the regulation of spot markets and maintain market order. At the same time, efforts have been made to ensure the organizational implementation of policies to regulate the prices of human commodities, to establish adequate mechanisms to improve the capacity and level of price regulation and to guarantee basic stability in the supply and prices of human commodities。
In addition, for the national food and material reserve, the organization is placed in national reserves of copper, aluminium and zinc. Meng yi said that the offer was directed to downstream and downstream manufacturing enterprises, with open bidding and as favourable as possible to smes in terms of terms of participation. In the coming period, the commission will also work with interested parties to implement multiple batches, in due course, in the light of market changes, to increase market supply in a timely manner, to ease corporate cost pressures and to facilitate the return of prices to reasonable margins。
75. 6 billion! The federal reserve experienced a 45 per cent surge in repurchase usage, breaking record
In the early hours of thursday, beijing time, the fed fomc announced that the overnight reverse purchase rate would be adjusted from 0 to 0. 05 per cent. A zero hedge analysis of financial bloggers states that the risk-free gains generated by the round-the-clock reverse buy-back instrument now exceed many short-term united states treasury bonds。
Following the federal reserve's decision to increase the overnight reverse purchase rate, the market's demand for reverse purchases rose to record high. On thursday, us eastern time, 68 opponents received a total of $75. 6 billion in the overnight buy-back at the federal reserve fixed interest rate, an increase of $253. 1 billion, or 45 per cent, from $50. 29 billion on wednesday. The scale of reverse purchases on thursday also updated the previous record high of $584 billion。
Several analysts, such as morgan chase strategist teresa ho, stated in their report that although the fed adjusted the excess reserve rate and the repurchase agreement rate to ease the downward pressure on short-end interest rates, supply and demand imbalances remained and were likely to continue to intensify in the medium term, with technical adjustments not a panacea for the currency market。
According to the above analysts, while the fed has begun to discuss the reduction of stimulus measures, the actual timing “is still far from certain”, while the cycles of reserve growth, deposit creation and management and imf asset growth will continue. This means that the federal reserve will increase its trading volume of reverse purchase tools overnight. Even when technical adjustments have been made, even if the fed’s asset purchases end at some point in the future, the funds allocated to the repurchase agreement (rrp) have not been clearly lost, at least until other assets that may be purchased by the imf are available。
The science and technology unit leads to the red bank unit, the medium education unit. Drop
On thursday, the local time, the three stock points were rising and falling. As of the closing date, the index dropped by 0. 04 per cent to 4221. 86 points; the nasdaq index rose by 0. 87 per cent to 1,4161. 35 points; and the dow jones index fell by 0. 62 per cent to 33823. 45 points。
The rise in large technology units is an important factor in the rise in nano-fingerming. Of these, apples rose by 1. 26 per cent, tesla by 1. 94 per cent; amd by 5. 55 per cent; amazon by 2. 17 per cent; facebook by 1. 64 per cent; microsoft by 1. 37 per cent; google by 0. 54 per cent; nai-fly by 1. 2 per cent; intel by 0. 07 per cent; and high inflation by 0. 3 per cent。
The u. S. Equity bank also suffered, with a drop of 2. 56 per cent at the top, 2. 89 per cent at morgan and 3. 5 per cent at morgan stanley
In the education sector, there has also been a general decline, with a better future of 13. 98 per cent and a new east 8. 84 per cent。
