CPI data announced the price of gold, which will be worse next week or worsening.

The U.S. Department of Labor announced the latest August Consumer Price Index (CPI) quarterly annual annual rate index. In the case of market forecast value 8.1, the CPI index recorded 8.3%, which was lower than the previous index announced 8.5%. After the data was announced, the US dollar index rose rapidly, non -US currency, US stocks, and crude oil fell, and international gold prices dived sharply.

International gold price oscillation down

1

Why does the gold price fall after CPI data is announced?

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The CPI index reflects the price of retail goods in the United States, which reflects the most intuitive data of inflation. The decline of the CPI index indicates that the level of inflation in the United States has been temporarily eased recently, and American consumers have also expressed an optimistic attitude. However, because the level of inflation in the United States is too serious and the data statistics from the US Economic Brown Book last week, the United States will also face the potential economic recession risk next year. Therefore, the current situation is not optimistic at this stage.

Affected by the CPI data, the US dollar index experienced a wave of drastically. The US dollar index rushed to 110 to reduce the pressure. Last night, the highest touched 110.07 in the market. The wave of the US dollar index fiercely increased, not only to cause tremendous pressure on non -US currencies, including crude oil, the three major US stock indexes and gold all undertaking all inheritance Pressing down, the anti -correlation between goods was well reflected.

2

The market is concerned about the Federal Reserve's September Intersection Meeting next week

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In August, the US CPI data increased the market's expectations of the Fed's September interest rate interest rate interest rate hikes in September. The US dollar index may still have more room for rise, which will further increase the attraction of international capital return. The driving force for the US dollar index will bring more pressure on gold prices. If the price of gold can still be stabilized at a position of $ 1680 per ounce under such pressure, then it may be a better buying point at this time, but it must be noted that this theoretical buying point is compared to the current United States at this stage. In fact, there is still huge risk exposure.

Because the highest level of inflation over the past 40 years has gone ahead, the Federal Reserve has greatly raised interest rates in order to suppress the economic situation of out of control, making the market conditions unprecedented and complicated. Statement and economic expectations, Fed Chairman Powell will also hold a press conference on monetary policy. Under the circumstances that the US Treasury bond market is not optimistic. When some big buyers in the international market began to reduce their holdings on a large scale, this interest rate resolution has attracted much attention from all parties.

The author believes that in this situation, the Fed expects that it is relatively difficult to solve the problem of inflation through big interest rate hikes, and the complex international situation has also become a huge obstacle. European energy supply problems, geographical situation issues, and even food problems may have a impact on global inflation, and the United States cannot be alone.

The U.S. dollar index has increased greatly due to interest rate hikes in the short term, but in contrast, the US stock market and bond markets are more weak when dealing with economic changes. Inhibiting inflation can be relieved by interest rate hikes, but the shadow that gets rid of the economic recession needs to rely on the vibration of the real economy, which undoubtedly requires more time to achieve it. Such a high deficit and the disapproval of US Treasury bonds need to be resolved slowly.

3

Although the pressure is strong, gold is still worth considering

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The high US dollar index is currently under huge pressure on gold prices. In the long run, gold prices have a lot of support from fundamentals. Although it may not be so far away from the US $ 1680/ounce, the appearance of lower prices also provides better buying points. In the long run, gold is a variety worthy of consideration. When the world is not optimistic about the status of the US international currency, some countries have begun to explore the situation of getting rid of the US dollar settlement to carry out international trade. For new changes, there are no better investment products to replace gold.

The international gold price has come to nearly $ 1700/ounce again. At the position of $ 1680/ounce to $ 1700/ounce, the trend of gold price becomes complicated. In the face of strong support in this interval, any risk exposure in any investment direction has changed. When it was big, before the Federal Reserve determined the specific interest rate hike on September 22, the market may not have a big breakthrough and steering. The pressure level of $ 1720/ounce and 1730 US dollars/ounces above the top, the support level of the $ 1680/ounce -$ 1700 interval support level below. The specific changes should occur after the meeting meeting next week. For stability.

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