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On Wednesday, spot gold saw a V-shaped rebound in the U.S. session. It broke through the $1,740 mark during the session and rose by nearly $40 from the daily low. It finally closed up 0.57% at $1735.62 per ounce; spot silver closed up 1.69% at $19.21 per ounce.

Comment: Gold rebounded from a near one-year low on Wednesday as the dollar retreated after an initial surge, helping the precious metal avoid pressure from the prospect of sharply higher interest rates following a surge in U.S. consumer prices. Spot gold rose 0.8% to $1,739.49 an ounce, after hitting its lowest since August 2021 at $1,707.09 earlier in the session after U.S. data pushed the dollar to a multi-decade high.

Suggestion: short Spot gold at 1730.70, and the target point is 1707.90.

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The dollar index retreated sharply after hitting an intraday high of 108.61, and gave up most of its previous gains, and finally closed down 0.111% at 108.05; the 10-year U.S. bond yield hit a high of 3.071% and then fell back to close at 2.935% . In addition, the inversion of the U.S. 2-year and 10-year Treasury yield curve expanded to 21.5 basis points, the largest since November 2000.

Comment: The dollar fell from a 20-year high on Wednesday, and the euro rose back above parity after briefly falling below parity. Earlier data showed that U.S. consumer prices rose the most in more than 40 years in June. U.S. consumer prices jumped 9.1 percent in June from a year earlier, the biggest gain in more than 40 years, as Americans had to pay more for gasoline, food, health care and rent.

Suggestion: short EUR/USD at 1.00400, target point 0.99500

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In terms of crude oil, the two oil prices were on a roller coaster ride. WTI crude oil dived after failing to challenge $98 in intraday trading, and finally closed up 0.84% at $96.37/barrel; Brent crude remained within a narrow range, closing up 0.55% at $99.61/barrel. bucket.

Comment: Oil prices edged up on Wednesday, even as U.S. oil inventories rose and U.S. inflation data supported another sharp rate hike by the Federal Reserve. Brent crude, the global benchmark, has fallen sharply since hitting $139 in March, near a record high set in 2008. Investors have been selling oil recently, fearing that aggressive interest rate hikes to stem inflation would slow economic growth and hit oil demand.

Suggestion: short US crude oil at 93.680, the target point is 90.000.

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US stocks were appeased by Biden, and the three major stock indexes continued to rise after opening sharply lower. The Nasdaq closed slightly down 0.15%, and fell nearly 2% during the session, the Dow fell 0.67%, and the S&P 500 closed down 0.45%.

Comment: US stocks ended lower on Wednesday as investors digested higher-than-expected U.S. inflation data, a report that heightened concerns that the Federal Reserve could raise key interest rates by as much as 100 basis points later this month. All three major indexes ended lower, but all shrugged off early session lows and occasionally rose above their previous closes throughout the session.

Suggestion: Go short at 11666.200 on Nasdaq, target at 11464.570.

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US inflation hits a 40-year high, entering the "9 era"

The U.S. unseasonably adjusted CPI for June, released last night, recorded an annual rate of 9.1%, the largest increase since November 1981 and far exceeding expectations of 8.80%. Market bets on the odds of a 100 basis point rate hike by the Fed this month soared to as high as 75% at one point after the data.

Fed's Bostic: 100bps rate hike possible in July

When asked about the possibility of a 100 basis point rate hike in July, 2024 FOMC voter and Atlanta Fed President Bostic said anything is possible. At present, swap transactions show that the possibility of the Fed raising interest rates by 100 basis points in July has increased; the swap market shows that the probability of the Fed raising interest rates by 100 basis points in July is close to three-quarters; the US interest rate futures market predicts that the Fed will increase interest rates in July by 100 basis points. The odds of 100 basis points of interest are more than 80%.

Fed's Barkin: Fed's focus should be on inflation, not growth

In the 2024 FOMC vote, Richmond Fed President Barkin said that the current overall inflation rate and core inflation rate in the United States are too high, and the Fed's focus should be on controlling inflation, not economic growth.

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