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Yesterday, the collapse of the market, tonight in the "coconut milk" under the leadership of whether to continue to reproduce

Gold "bargain-hunting theory" crying in the toilet yesterday! $ 2 billion selling, once in 1 minute flash nearly 18 dollars, ghosts know why the market so arrogant. Although as early as Tuesday (June 26) early release, gold barely returned to the $ 1240 / ounce level near. But the market is still undecided, because the Federal Reserve Chairman "coconut milk" to come tonight, gold prices may collapse at any time. And investors have to worry about yesterday's collapse of the market is once again to reproduce.

"Fat fingers" to reproduce, gold "bargain-hunting theory" crying in the toilet yesterday

Monday, the first day of the city market in the absence of any news side of the stimulation, the gold suddenly 1 minute straight line collapse nearly 18 US dollars, the volume of sharp amplification, 18,000 contracts sold, worth more than 20 billion US dollars, the volume reached the recent average of 150 %. According to Bloomberg, this level even more than Trump accidentally elected US president or British referendum unexpectedly out of the EU after the volume. It can be said that the bull has been crying in the toilet, "bargain-hunting" people set up to collapse. Although in the New York session, gold with unusually weak US durable goods orders data to reduce some of the decline, back to the $ 1240 / ounce level near. After experiencing the sudden collapse of the collapse, after the big sellers, you dare "bargain-hunting" gold?

Analysts said Monday's collapse of gold is likely to be a mistake, some people sell the wrong, and buy back, but the gold price fell below the 200-day moving average, quickly triggered a $ 1250 / ounce stop below. At the same time, the sudden fall in gold prices to enlarge the Asian market liquidity problems, while the London market in the rest of the weekend after the holiday just opened, the market is not ready to be its sudden selling disrupted position.

Gold flash collapse after the "reverse indicators" Goldman Sachs flee more

Gold's collapse of the market, the outbreak did not take long, "reverse indicators" Goldman Sachs flew to sing, claiming that gold may still rise in the near future to 1250 US dollars / ounce. Goldman Sachs said that although the Fed's tightening of real interest rates may cause greater pressure on gold, but there are three forces can resist the Fed's pressure on gold. ① the rate of return on US stocks is declining; ② the acceleration of emerging market GDP will increase the purchasing power of gold consumption; ③ gold ore supply is expected to peak in 2017.

It is noteworthy that Goldman Sachs is a well-known market "reverse index king", repeated ambition, investors may be more careful about the recommendations of Goldman Sachs Oh

Tonight in the "coconut milk" under the leadership of whether to continue to collapse collapse

Federal Reserve Chairman Yelun will be in Beijing on Wednesday (June 27) at 1 am speech, since the June decision since the first appearance. Yale does not necessarily comment on the outlook for monetary policy, but may indicate the views on the economic outlook. Recent remarks by officials of the Federal Reserve have shown a "hawk staggered" situation. The job market is good and inflation in the doldrums, so that market investors have doubts about the Fed's policy outlook, I do not know the Fed will eventually tend to consider whether to raise interest rates, which is the end of last week, gold fell, recorded a rebound the elements of.

US economic data has been very weak recently, the market analysis, the economy has not fully recovered in the case, the Fed began to tighten a lot of probability will make the economy once again into recession. US Department of Commerce data show that US durable goods orders in May than the initial value of 1.1% shrinking, less than expected contraction of 0.6%, the worst level since November last year.

US May imports of durable goods orders than the initial value of 0.1% increase, less than expected growth of 0.4%; the United States in May excluding aircraft non-defense capital durable goods orders than the initial value of 0.2% decline, less than expected growth of 0.3%.

Analysts believe that unexpected orders for durable goods in May, means that the durables industry investment slowdown may drag the US economic growth in the second quarter. The breakdown of the data is less than expected, indicating that commercial investment on the economic recovery of the boost effect is limited. Durable goods industry outlook due to car sales gradually cold Mengyin, and gradually improve the growth rate of overseas market demand has not yet reached the extent that can boost the US manufacturing exports.

Although the unemployment rate reached the level of the Federal Reserve, but inflation is not with. US PCE price index in April was 1.7% year on year, March PCE is 1.9%, that is, since the March meeting, the core PCE year on year growth rate also decreased by 0.2 percentage points. In the June Federal Reserve resolution, Yelun did not seem to take the low inflation seriously, she said the current data is noisy, saying "do not react to a small number of possible inflation data." Yelun believes that weak inflation may be affected by temporary factors, inflation will eventually rise.

Now the Fed's balance sheet is 4.5 trillion US dollars, the beginning of the 2008 economic crisis, this figure is 800 billion US dollars, just nine years, expanded five times. Now the Fed is ready to officially start the contract.


The impact on gold

If Yelun this speech again to avoid the current US low inflation problem, then it is likely to suppress the formation of gold factors. Last week, Dudley was "hawkish", once the gold fell to a one-month low, market analysts said that if Dudley confirmed that the Fed will continue to move to the hawks, gold is difficult to resume rising.

And after experiencing yesterday's flashback market, the gold market buying popularity is difficult to recover, even if Yale published a view on the economic outlook, the expected effect of gold will be very limited.

The current need to be cautious "bargain-hunting theory", and investors need to pay special attention to today's European market after the opening, whether the gold will reproduce yesterday, and the opening of New York also need to be very cautious. Because from the previous historical experience to determine the majority of the collapse of the basic occurred in the two time points.