On July 10 Beijing time, the International Finance Association issued a reminder: once the Federal Reserve’s stance becomes even more hawkish, and oil prices resume violent fluctuations, U.S. dollar liquidity may be tightened further, raising the risk threshold for emerging markets as well.
This is not friendly to gold. A hawkish Federal Reserve usually means higher real interest rates, making the opportunity cost of holding non-yielding gold greater; and this round of risk is not hinging on safe-haven sentiment—instead, it hinges on the strengthening of the U.S. dollar. As it filters through, it tends to exert downward pressure on gold prices more than it provides support.
Keep your eyes open: this is only a scenario warning provided by institutions, not an already implemented policy shift. The real variables still depend on how subsequent Fed officials communicate and how oil prices move.
For those who want to track gold at low cost, you can watch $PAXG (gold price pegged, tradable directly on Binance) and also compare it with the spot trend of $XAU.
As for the gate of U.S. dollar liquidity—do you think this round will be tightened further?
#黄金 #GoldTrading