News summary

Precious metals market was under pressure, with London gold at US$2356, and Shanghai gold down 2.0%cryptogamesearntoplay.61%; U.S. bond yields temporarily stopped falling and the RMB depreciated; Federal Reserve officials tend to further tighten policies, and the market reduces expectations of interest rate cuts; it is recommended to pay attention to the US$2350 support of London gold.

Newsletter text

[The precious metals market corrected today, and gold and silver prices fell] The precious metals market showed a correction trend today. The London gold trading price hovered around US$2356, while London silver was at 30.cryptogamesearntoplay.3 dollars. Shanghai Gold's main contract is 559.72 yuan/gramcryptogamesearntoplayclosing price endscryptogamesearntoplayAfter trading, it recorded a decline of 2.61%; the main contract of Shanghai Bank ended trading at 7954 yuan/kg, with an even worse decline, reaching 4.99%.

[Volatility of U.S. Index and U.S. Bond yields] The U.S. dollar index showed narrow fluctuations in the short term, with the latest trading price around 104.8. On the other hand, the yield on 10-year U.S. bonds rose slightly, trading at around 4.445%.

[The RMB exchange rate continues to decline] The RMB exchange rate continues to weaken, with the latest trading price reaching around 7.244.

[Federal Reserve's May meeting minutes reveal policy trends] According to the minutes of the Federal Reserve's May meeting, several officials expressed their willingness to further tighten monetary policy if necessary. The possibility that long-term neutral interest rates could be higher than previously expected was also discussed at the meeting, and officials also emphasized the importance of keeping rates stable for a long time and the possibility of lowering them if the labor market is weak. In addition, some officials expressed concern about the potential risks released by a loose financial environment.

[Market expectations adjust, precious metals are under pressure] Affected by Federal Reserve officials 'comments on their willingness to tighten policies in the minutes of the May meeting, the market's expectations for interest rate cuts this year have decreased, the US dollar index rebounded, and the 10-year U.S. bond yield has also stabilized, which has put certain pressure on precious metals, and the market expects that precious metals may undergo further correction in the short term.

[Trading strategy update, focusing on key support levels] The support level for London gold is set at US$2350. If it falls below, it may fall to US$2280. The support level for London silver is focused on the US$30 mark. If it breaks below, it may fall to around US$28.6. The 20-day moving average of the main contract of Shanghai Gold is regarded as a key support level. If it falls below, it may align with prices around 542 yuan; the main contract of Shanghai Bank uses 7800 yuan as an important support level. Once it falls below, the target will point to around 7500 yuan.

[Arbitrage strategy maintains a wait-and-see attitude] In the current market environment, arbitrage strategies continue to adopt a wait-and-see attitude.

[Option strategy recommends selling specific contracts] The current option strategy recommends selling AU2408 C576 and AG2408 C8500 contracts.