Driven by market demand for hedging, the US dollar rose sharply yesterday

Gold Short Term Approaches Important Support point

On Tuesday, as traders' confidence in the Federal Reserve's interest rate cut wavered, the US dollar index accelerated its rise in the European market, closing at 102 levels and ultimately closing up 0.87% at 102.23. The yield on US Treasury bonds surged, with the 10-year yield closing at 3.942%, reaching a new two-week high; The two-year US Treasury yield, which is more sensitive to the Federal Reserve's policy interest rates, rose 10 basis points at one point and ultimately closed at 4.332%.

On Tuesday (January 2nd), as investors lowered their expectations for interest rate cuts, the US dollar strengthened, putting pressure on oil. Meanwhile, due to concerns that the tense situation in the Red Sea may disrupt supply easing, oil prices fell on the first trading day of 2024, and international crude oil futures settlement prices fell by more than 1%.

Due to the reduction of market bets on the Federal Reserve's interest rate cut and the drag of large cap stocks such as Apple (AAPL. O), the three major US stock indexes have diverged, with the Dow up 0.07%, the Nasdaq down 1.6%, and the S&P 500 down 0.57%. Apple, which was previously downgraded by Barclays, fell 3.6%, with chip stocks falling across the board. Arm (ARM. O) closed down 8.2%, ASML. O fell 5.2%, and NVDA. O fell 2.7%. The Nasdaq China Golden Dragon Index fell 3.5%, while Ideal Automobile (LI.O) and NIO. N both fell more than 7%, and JD. O fell nearly 6%.