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Gold prices hit five-week highs
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Decision Analysis]: The hope of reaching a trade agreement between the United States and Europe is slim, and gold prices hit a five-week high." Hope it will be helpful to you! The original content is as follows:
On Wednesday (July 23, Beijing time), spot gold trading was around $3,432 per ounce, and gold prices climbed to their highest five-weeks on Tuesday. Thanks to trade uncertainty and falling U.S. Treasury yields, investors continue to pay attention to the deadline for US President Trump’s August 1 tariff negotiations; U.S. crude oil trading was around $65.60 per barrel, and oil prices fell for the third consecutive trading day on Tuesday, as hopes of a trade agreement between the United States and Europe have slim, exacerbating concerns about a slowdown in the world’s largest oil market economy.
Focus on the day
U.S. President Trump delivered a speech at an event called "Win the Artificial Intelligence eouu.cnpetition."
Stock and Stock Market
The U.S. S&P 500 hit a record close high on Tuesday after General Motors fell sharply and Tesla rose, and investors were paying attention to recent and upcoming corporate results, as well as signs of progress in U.S. trade negotiations.
GM fell sharply by 8.1%, after the eouu.cnpany reported quarterly results lost $1 billion due to tariffs, further exacerbating investors' concerns about US President Trump's global trade policy. Ford fell about 1%.
Tesla rose 1.1% the day before quarterly results were released, and Alphabet, which will report results on Wednesday, rose 0.65%.
Baird investment strategy analyst Ross Mayfield said: "The market is consolidating its recent gains and is on the wait-and-see state, with some major catalysts eouu.cning in the next week or two, including the August 1 tariff negotiation deadline and the Big SevenMany important financial reports were released. ”
Other big tech stocks fell, with MetaPlatforms and Microsoft both down about 1%. Lockheed Martin fell nearly 11%, after a quarterly profit plunged by about 80%.
As Trump’s own August 1 deadline approaches, U.S. trade policy remains a big uncertainty for investors and businesses. Some trade talks appear to be stalled, and optimism about a breakthrough deal with India has faded, and EU officials are considering countermeasures against the United States.
The S&P 500 rose 0. 06%, closing at 6309.62 points. The Nasdaq closed down 0.39% to 20,892.69 points. The Dow Jones Industrial Average rose 0.40% to 44,502.44 points.
Nine out of 11 sectors of the S&P 500 rose, with the health care sector leading the gain, up 1.9%, and the real estate sector followed closely behind, up 1.78%.
According to London, the U.S. exchanges Analysts expect S&P 500 stocks to grow 7% in the second quarter earnings, with tech giants driving most of the growth.
The economic data released last week was mixed, and traders almost ruled out the possibility of the Fed's rate cut at next week's policy meeting. According to CME's FedWatch tool, they currently expect a rate cut in September of about 60%. Gold prices climbed to their five-week highest on Tuesday, helped by trade. Determination and U.S. Treasury yields fell, and investors continued to focus on President Trump’s August 1 tariff negotiation deadline.
Spot gold rose 1% to hit its highest since June 16, at $3,428.84 per ounce. U.S. gold futures rose 1.1% to $3,443.70. The benchmark U.S. 10-year Treasury yield fell to its lowest in the past two weeks, making interest-free gold more attractive.
Jim Wyckoff, senior analyst at KitcoMetals, said: “Trade uncertainty is driving some safe-haven demand. The United States is brewing several trade deals, with rumors that the EU and the United States may not be able to reach an agreement, or are certainly not close to reaching an agreement. ”
U.S. Treasury Secretary Besent said on Tuesday that he will meet with the Treasury Secretary of the Asian power in Stockholm next week to discuss whether to extend the deadline for reaching an August 12 agreement to avoid a significant tariff increase. He also said the United States is ready to announce a "sequential trade deal" with other countries.
At the same time, EU diplomats hinted that the EU is considering a broader countermeasure against the United States as the prospect of reaching a trade agreement fades.
Investors are also preparing for the Fed meeting next week. Markets are expected toReserves will keep interest rates unchanged, but may cut rates in October.
Bester also said on Tuesday that there was no need for Fed Chairman Powell to resign immediately, a day after he called for a review of the Fed as an institution. Fed Vice Chairman of Financial Regulation Financial Regulation has stressed the importance of Fed independence amid Trump’s continuous pressure to reduce borrowing costs.
Spot silver rose 0.6% to $39.16 an ounce, platinum fell 0.5% to $1,431.64 and palladium rose 1.4% to $1,282.82. Oil market
Oil prices fell for the third consecutive trading day on Tuesday as hopes of a trade deal between the United States and Europe increased concerns about a slowdown in the world's largest oil market economy.
The settlement price of Brent crude oil futures was $68.59 per barrel, down 0.9%. The settlement price of the U.S. crude oil contract was $66.21 per barrel, down 1.47%. EU diplomats told Reuters that the EU is exploring a broader set of possible measures to counter the U.S. as prospects for an acceptable trade deal with Washington are bleak.
U.S. President Trump will set August 1 as a deadline for countries to reach a trade agreement or face high tariffs. He has threatened to impose a 30% tariff on EU imported goods if an agreement cannot be reached. "Tariff factors appear to be a bigger focus before the U.S. deadline arrives," analysts at Ritterbuschand Associates said in a note. "The outlook for the U.S. and India to reach a temporary trade deal by the deadline has also become bleak, two Indian government sources told Reuters.
Diesel is the largest decline in the entire energy sector, reflecting market concerns about the economy. This industrial fuel, mainly used in the manufacturing, construction and heavy transport industries, has performed the most in the oil market in recent weeks due to tight global supply. U.S. ultra-low sulfur diesel futures fell nearly 3% on Tuesday to $102.50 a barrel.
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