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The Fed has remained silent for the third time in a row, with gold falling by more than $60!
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Platform]: The Federal Reserve has remained silent for the third time in a row, and gold fell by more than $60!" Hope it will be helpful to you! The original content is as follows:
On May 8, early trading in the Asian market on Thursday, Beijing time, the US dollar index hovered around 99.81. On Wednesday, the dollar index strengthened and finally closed up 0.47% to 99.86 as the Federal Reserve remained silent and Powell reiterated his willingness to wait for the prospects to become clearer. The benchmark 10-year U.S. Treasury yield closed at 4.2740%; the two-year U.S. Treasury yield closed at 3.7870%. Due to the market's optimistic attitude towards trade negotiations and the strengthening of the US dollar, spot gold fell by more than $60 during the day and finally closed down 2.12% at $3364.07/oz; spot silver closed down 2.28% at $32.43/oz. WTI crude oil eventually closed down 1.81% at $57.91 per barrel as hopes of a nuclear deal with the United States alleviated market concerns about a decrease in crude oil supply; Brent crude oil closed down 1.76% at $60.92 per barrel.
Analysis of major currencies
Dollar Index: As of press time, the US dollar index hovers around 99.81. The dollar index initially fell to 99.50 after the Fed kept interest rates unchanged at 4.5%, citing rising risks on both sides of the country's dual mission. The policy statement was cautious in its tone, stressing that while the labor market remains solid, uncertainty over the economic outlook has increased. Traders had briefly priced at most three interest rate cuts this year, but market confidence waned as the press conference unfolded. Technically, if the US dollar index successfully closes above 50MA at 99.58, it will move towards the nearest resistance level, i.e.Located in the range 100.20–100.40.
Analysis of gold and crude oil market trends
1) Analysis of gold market trends
Thursday, gold trading around 3381.7. On Wednesday, the Fed kept interest rates unchanged at 4.25%-4.50% at its third straight meeting in 2025, citing increased uncertainty about the economic outlook and rising risks to maximum employment and price stability.
2) Analysis of crude oil market trends
On Thursday, crude oil trading around 57.78. International oil prices fell slightly as U.S. gasoline stocks unexpectedly increased market concerns about weak demand for refined oil, while investors were closely watching the upcoming high-level trade talks between China and the United States in Switzerland this weekend. The latest data from the U.S. Energy Information Administration (EIA) shows that unexpected increases in U.S. gasoline inventories last week have caused markets to worry that demand is still weak as the "pilot season" approaches at the end of this month.
Forex market trading reminder on May 8, 2025
①10:00 State Information Office held a press conference
②14:00 German March seasonally adjusted industrial output monthly rate
③14:00 German March seasonally adjusted trade account
④14:00 UK April Halifax seasonally adjusted housing price index monthly rate
⑤15:00 Ministry of xmmarkets.cnmerce held its first regular press conference in May
⑥ 19:02 The Bank of England released interest rate resolution and monetary policy report
⑦20:30 Number of initial unemployment claims in the United States to May 3
⑧22:00 Monthly wholesale sales rate in the United States in March
⑨22:30 EIA natural gas inventories in the United States to May 2
⑩23:00 US New York Fed's 1-year inflation expectation in April
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