[Market Morning] Gold Fluctuated Sideways, Key US Bond Curve Deepest Inversion In More Than Two Years, Japan Intervened In the Foreign Exchange Market for the First Time In 24 Years

On Thursday, spot gold fluctuated sideways, with a fluctuation range of $30, and finally closed down 0.14% at $1,671.44 per ounce; spot silver followed a similar trend and finally closed down 0.12% at $19.57 per ounce.

Comment: Gold prices fell slightly in volatile trading on Thursday, affected by a stronger dollar and rising US bond yields, while the Fed's hawkish policy stance cast a shadow over the prospect of non-yielding gold.

Suggestion: short spot gold at 1672.0 position, target point 1653.59.

The US dollar index fell slightly but held steady above the 111 mark and finally closed down 0.09% at 111.29; the 10-year US bond yield reached a high of 3.7%, continuing to hit a new high since 2011; the two-year US bond yield It once rose to 4.163%, a new high in 15 years; the yield on the 30-year US Treasury bond once rose to 3.654%, continuing to hit a new high since 2014. The gap between two-year and 10-year US Treasury yields widened to 57.80 basis points at one point, the widest since June 2000.

Comment: The dollar index slipped 0.1% to 111.32 on Thursday, down from a 20-year high of 111.81 sets earlier in the session. The latest forecast released by the Fed sees interest rates peaking at 4.6% next year, with no cuts until 2024. The Fed raised its policy rate target range by another 75 basis points to 3%-3.25% on Thursday, as expected. The dollar has been supported by demand for safe-haven assets after Russian President Vladimir Putin ordered reservists to be called up to fight in Ukraine on Wednesday.

Suggestion: short EUR/USD at 0.98390 position, target point 0.98058

In terms of crude oil, WTI crude oil finished higher and fell and finally closed up 0.57% at US$83.49 per barrel; Brent crude oil finally closed up 0.51% at US$90.35 per barrel.

Comment: Oil prices closed up nearly 1% on Thursday, paring earlier gains as markets focused on Russian oil supplies, a rebound in demand in Asia, and the Bank of England raised interest rates less than some had expected.

Suggestion: short US crude oil at 83.371 position; the target point is 81.045.

US stocks closed, the Dow closed down 0.35%, the Nasdaq closed down 1.37%, and the S&P 500 closed down 0.84%. Tesla fell about 4 percent after recalling nearly 1.1 million US vehicles for faulty windows.

Comment: Major U.S. stock indexes closed lower for a third straight session on Thursday as investors sold growth stocks, including technology stocks, in response to the Fed's latest aggressive move to rein in inflation. The Federal Reserve raised interest rates by 75 basis points on Thursday and signaled that the policy rate path would be longer than the market had expected, adding to fears of further volatility in stocks and bonds, which have been in bear markets this year.

Suggestion: go short at 11505.900 of the Nasdaq index, target point at 11389.700

German media: Germany plans to nationalize another natural gas importer

The German government plans to nationalize the gas importer Guarantee European Energy Security Company to avoid bankruptcy. A day earlier, the German government decided to nationalize Uniper, the country's largest importer of Russian natural gas, in order to rid it of financial difficulties caused by Russia's "cut of supply" and to deal with the deepening energy crisis. Reuters reported on the 22nd, citing a spokesman for the German economy ministry, that discussions on future arrangements to ensure European energy security companies are continuing. The company did not respond to media reports.

Chilean Finance Minister: Will curb inflation earlier than other countries

Chile's foreign debt issuance is expected to reach $12 billion in 2023, with plans to "normalize" the budget in 2023, the country's finance minister said. The current economic contraction in Chile will begin to reverse after the first quarter of 2023, and it is believed that inflation will be contained earlier than in other countries.

Spain plans a huge wealth tax to ease inflationary pressure on ordinary people

Spain is considering an additional tax on the richest 1% to help ease the inflation burden on the rest of the population. Faced with discontent over high inflation, Prime Minister Sanchez is pushing for legislation to increase taxes on banks and energy companies, which would raise 7 billion euros ($6.9 billion) over the next two years to pay for electricity tax cuts and fuel subsidies. Spain is the only country in the European Union to levy a huge wealth tax, collecting 1.2 billion euros in net wealth tax in 2020, according to the latest figures from Spain's national tax agency.