Decheng: Gold futures were sold for $2.3 billion
On the previous trading day, the gold market plunged to meet the testimony of Federal Reserve Chairman Yellen. Today, Yellen’s testimony seems to tell the market that the price of gold has fallen short. On Tuesday, Federal Reserve Chairman Yellen attended the US Senate Financial Committee hearing. The market generally expects Yellen to reveal more information about the Fed’s rate hike in this testimony. But the testimony of the Yellen pigeons became the fuse of the “big sell-off†in the gold market. Investors frantically sold more than 17,000 gold futures contracts worth about $2.3 billion, causing gold prices to fall 1% and fall below $1,300 per ounce: Yellen said in his testimony that the economy continues to improve, but the economic recovery has not been completed. There is still a huge gap in the labor market. Therefore, the US economy still needs the stimulus of loose monetary policy. In addition, Yellen also reminded the "bubble" of the US stock market. She said the Fed realized that low interest rates could prompt investors to risk high-yield, which increases financial system risk. The issuance of junk bonds has been active and the valuation seems to be somewhat distorted. The forecasted P/E ratios of small cap, biotech and social media stocks are higher than historical levels. Rayon Printed,Rayon Big Floral Print Fabric,Rayon Print Stock Fabric,Rayon Border Print Fabric SHAOXING TUNING INTERNATIONAL TRADING CORP. , https://www.tuningtex.com