[Market Morning] Gold Fell Below the 1710 Mark Twice, US Bond Yields Hit A New High, and US Index Gains Were Reversed

Spot gold fluctuated downward on Wednesday, falling below the $1,710 mark twice, and finally closed down 0.72% at $1,711.12 per ounce; spot silver failed to recover the $18 mark, and finally closed down 2.69% at $17.99 per ounce.

Comment: Gold prices fell on Wednesday, falling for the fifth consecutive month, affected by aggressive interest rate hikes by major central banks around the world. It is becoming increasingly clear that central banks will aggressively tighten policy due to unprecedented inflationary pressures, which will be bad for gold.

Suggestion: short Spot gold at 1709.30, and the target point is 1691.50.

The U.S. dollar index fell after hitting a daily high, erasing all intraday gains, and finally closed down 0.138% at 108.68; the two-year U.S. bond yield once rose to a 15-year high of over 3.5%, and the 10-year U.S. bond yield approached 3.2%, the highest since the end of June.

Comment: The dollar eased against a basket of currencies on Wednesday, but remained near a 20-year high hit on Monday as traders braced for more rate hikes by the Federal Reserve. The U.S. dollar index was last down 0.1 percent at 108.66, having earlier moved close to Monday's 20-year high of 109.48.

Suggestion: EUR/USD 1.00420 position to go long, the target point 1.00980.

In terms of crude oil, WTI crude oil broke through the $90 mark twice, and finally closed down 3.51% at $88.83 per barrel; Brent crude oil closed down 4.90% at $94.92 per barrel. Oil prices had their longest monthly losing streak since 2020 amid concerns over economic growth.

Comment: Oil prices extended losses on Wednesday amid fears that the global economy will slow further, with fears of demand destruction across the West as rising interest rates and inflation worries hang over Western economies.

Suggestion: short position of US crude oil 88.770, target point 86.280.

The three major U.S. stock indexes opened lower and closed lower for three consecutive days. The Dow closed down 0.88%, the Nasdaq closed down 0.56%, and the S&P 500 closed down 0.78%. Snap closed up about 9 percent as the company expects layoffs and other related measures to save $500 million in annual operating costs.

Comment: The U.S. stock market closed lower for the fourth consecutive day on Wednesday and recorded its weakest August performance in seven years, as worries about the Fed's aggressive interest rate hikes persist. Falling technology stocks, especially chip stocks, further weighed on the market after both Seagate and Hewlett-Packard issued weak forecasts.

Suggestion: Go short at the 12162.000 position of the Nasdaq index, and the target point is 12042.700.

OPEC+ sees oil demand growth at risk as market tightens in 2022 due to lack of capacity

OPEC+ sources said the oil market will see only a small surplus of 400,000 bpd in 2022, well below previous forecasts, due to insufficient production by its members. The Joint Technical Committee (JTC) will meet on Wednesday to advise the market largely on the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ group of producers led by Russia.

Gazprom president: Russia's natural gas reserves can be exploited for another 100 years

According to the TASS news agency, on August 31, local time, Gazprom President Miller said that so far, Russia has extracted 288.1 billion cubic meters of natural gas this year, of which 82.2 billion cubic meters have been exported to countries other than the former Soviet republics. He predicts that natural gas prices will rise above $4,000 per thousand cubic meters this autumn and winter. Miller also noted that Russia's natural gas reserves could be exploited for another 100 years.

German foreign minister: EU will propose 8th round of sanctions against Russia

Since the Russia-Ukraine conflict, the EU has imposed seven rounds of sanctions on Russia. On August 31, local time, German Federal Foreign Minister Berberk said that the EU is negotiating the 8th round of sanctions, and Russian oil exports may become the focus of sanctions. Bell Burke revealed at the EU foreign ministers' meeting in Prague that day that the German government is working hard to push for the implementation of the eighth round of sanctions against Russia and has made recommendations to the EU on this. Although Bellburke did not disclose the content of the specific sanctions, she stressed that it is very important to be able to maintain sanctions against Russia for a long time.