After the interest rate meeting on Tuesday (1st), the Reserve Bank of Australia maintained all monetary policies unchanged as expected and the interest rate remained at 0.1%. In its statement, the Reserve Bank of Australia reiterated that inflation will return to the 2%-3% range set by the bank (its first quarter annual inflation rate was 1.1%), and that it will see a significant increase in wages as an indicator of its monetary policy tightening. In addition, the Reserve Bank of Australia also mentioned that the recent outbreak in Victoria has also added to the uncertainty of the country’s economic prospects.
In this week, the U.S. dollar index fell slightly and is now at around 89.88; the yellow price rebounded rapidly in the short term, and the gold price just returned to the position of $1,900 per ounce. In the early days of the Asian market on Wednesday, there was a “crazy scene” in the foreign exchange market. Turkish President Erdogan called for a rate cut to ease inflation. He also proposed a clear time for the rate cut. The Turkish lira plunged against the US dollar after Erdogan’s speech, and the short-term decline was close to 3,000 points. Due to strong US manufacturing data and higher US Treasury yields, the attractiveness of gold was weakened. The price of gold fell on Tuesday, with the lowest price of gold hitting $1,892.26 per ounce. However, during the Asian market on Wednesday, as the US dollar fell, spot gold immediately rebounded. The price of gold just broke the US$1,900 per ounce mark and currently hits the highest level of US$1,902.32 per ounce.
Service relating to Over-the-counter (OTC) Gold Bullion/Silver trading is provided by MOL. OTC Gold/Silver Bullion trading carries a high degree of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. OTC Gold/Silver Bullion is not regulated by the Securities and Futures Commission (""SFC"") and therefore trading OTC Gold/Silver Bullion will not be subject to rules or regulations promulgated by the SFC. Before deciding to trade OTC Gold/Silver Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain losses in excess of your deposited fund or even more in extreme circumstances and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading OTC Gold/Silver Bullion, and seek advice from an independent financial advisor if you require.
