Gold prices have erased all gains for the year, and international gold prices continue to decline
After a decline during the Asian trading session on the 10th, international gold prices continued to drop during the European trading session that day, briefly falling below the $4200 per ounce mark, erasing all gains made this year. As of 17:15 Beijing time on the 10th, the price of gold futures for August delivery on the New York Mercantile Exchange was reported at $4188.70 per ounce, a decrease of 2.28%. Based on the current price, international gold prices have fallen a cumulative 3.51% this year.
Analysis indicates that the U.S. non-farm payroll data released last Friday significantly exceeded market expectations, suggesting that the fundamentals of the U.S. labor market remain resilient. In the face of inflationary risks triggered by the Middle East conflict, the market has recently placed more bets on the Federal Reserve's monetary policy path shifting towards interest rate hikes in the second half of the year. According to the CME Group's "FedWatch Tool," the market currently expects a nearly 70% probability that the Federal Reserve will raise interest rates by at least 25 basis points by the end of this year. Once the Federal Reserve begins to raise interest rates, it will diminish the attractiveness of non-interest-bearing assets like gold.
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