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What is the impact of the Fed's interest rate hike on gold?
1. What is the Fed's interest rate hike?

The so-called Fed's interest rate hike is simply the Fed's interest rate hike, which affects the economy and society. The function of the Federal Reserve is equivalent to the central bank of the United States, and it will decide whether to raise interest rates according to the economic development of the United States.

Second, how does the Federal Reserve realize the operation of raising interest rates?

FOMC meets in Washington every six weeks. This meeting is usually called the interest rate meeting. Generally speaking, it will be on Tuesday and Wednesday. Eight times a year.

3. What is the impact of the Fed's interest rate hike on China?

If the Fed raises interest rates, the pressure of RMB depreciation will increase. The Fed's interest rate hike will increase the deposit interest of American depositors. Therefore, international investors will be more willing to hold dollars, and international hot money has poured into the United States. The dollar strengthened and appreciated against other currencies, so other currencies depreciated against the dollar.

4. What is the relationship between raising interest rates and the yield of US bonds?

After the interest rate hike, the market interest rate rises, and the bond issuance rate rises, especially the short-term national debt interest rate. Of course, the interest rate of long-term treasury bonds will also rise.

Fifth, the impact of the Fed's interest rate hike on gold!

Raising interest rates is the central bank's strategy to reduce market liquidity. By raising interest rates, the central bank can increase bank deposits, reduce market investment and enhance the value of the local currency. If the Fed announces a rate hike, it means that the US dollar will appreciate. If the US dollar appreciates, investors will increase their investment in the US dollar, thus reducing their investment in gold. The number of people and funds investing in gold has decreased, which will inevitably lead to a decline in the price of gold.

6. On the contrary, if the Fed cuts interest rates, it will have an impact on gold.

Cutting interest rates is the central bank's strategy to increase market liquidity. By cutting interest rates, the central bank can reduce bank deposits, increase market investment and reduce the value of the local currency. If the Fed announces a rate cut, it means that the dollar will depreciate, and investors will reduce their investment in the dollar, thus increasing their investment in gold. The increase in the number of people and funds investing in gold will inevitably lead to an increase in the price of gold.