RBA Keeps All Monetary Policy Unchanged / Gold Price Rises Above US$1,900

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.