Everbright Futures 0729 Gold Review: Focus on the Federal Reserve Interest Rate Meeting, Light Position Observation for Gold in the Short Term

Overnight, London spot precious metals experienced choppy declines, failing to hold the $4,100/oz level, down 1.17%. SHFE gold fluctuated intraday, closing down 0.73%. Attention is on the Federal Reserve's policy meeting early Thursday, with rates expected to remain unchanged at 3.5%-3.75%. The key factors to watch are Waller's speech, voting divergence among officials, and the guidance on rate hikes for September. In the short term, gold is likely to remain volatile.

On the geopolitical front, US and Israeli leaders met to focus on the Iran nuclear issue. Israel stated that the US did not pressure them nor asked Israel to give up its military gains in Lebanon or the Gaza Strip. As the US-Israel meeting led the market to expect a higher probability of a renewed ceasefire agreement between the US and Iran, oil prices retreated and the US dollar weakened, but this did not drive gold prices higher. This may relate to the upcoming Fed meeting and a significant decline in US stocks. In the short term, a defensive approach is advisable in the highly volatile environment, waiting for the FOMC outcome; with uncertainty ahead, light positions and observation are recommended. Silver, platinum, and palladium still follow gold’s movements, with significant fluctuations due to geopolitical influences.

Written by: Li Qi

Professional Qualification: F3046227

Trading Advisory Qualification: Z0016145

Editor: Zhu Henan