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Investors’ Risk Aversion is Heating Up, Consolidating Gold Prices / Canada Keeps Interest Rates Unchanged at 0.25%

In English
4 月 22, 2021

 

Investors’ Risk Aversion is Heating Up, Consolidating Gold Prices
The global stock market is at a high level, setting new highs frequently, triggering bubble sentiment, investors have flocked to gold to hedge, and huge buying orders have also promoted the upward trend of gold. The Bank of Canada announced that it will reduce the size of its asset purchase program from 4 billion Canadian dollars a week to 3 billion Canadian dollars, becoming the first developed country central bank to reduce stimulus. However, as geo-risks intensify, its impact on gold has weakened, and the European Central Bank’s interest rate decision has become the focus of the market outlook. Wait and see whether it will be on hold as expected. As of 08:22 Hong Kong time, the price of gold fell slightly by 0.03% to 1,793.10 US dollars. The U.S. 10-year Treasury bond yield fell by 0.65% to 1.5538.
Canada Keeps Interest Rates Unchanged at 0.25%
After the interest rate meeting, the Bank of Canada announced to maintain interest rates unchanged at 0.25%, in line with market expectations. But at the same time, the current plan to buy government bonds of 4 billion Canadian dollars per week will be reduced to 3 billion Canadian dollars from next Monday (26th). The central bank statement stated that as households and businesses have begun to adapt and the new round of epidemic restrictions are expected, economic growth in the first quarter is expected to be significantly stronger than previously expected.

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