The risk of stagflation in the United States has increased, with the US dollar rising and falling back on Wednesday Gold prices hitting a new historical high above $3050

20 Mar, 2025

On Wednesday, the US dollar index surged and fell sharply after the announcement of the Federal Reserve's interest rate decision

On Wednesday, the US dollar index surged and fell sharply after the announcement of the Federal Reserve's interest rate decision, wiping out most of the day's decline and ultimately closing up 0.215% at 103.47. The yield of US Treasury bonds plummeted during the trading session, with the benchmark 10-year yield closing at 4.237%; The two-year US Treasury yield, which is more sensitive to monetary policy, fell below 4% and closed at 3.993%. Overnight gold prices continued to rise after Federal Reserve Chairman Powell's speech, with spot gold breaking through the $3050/ounce mark at one point, setting a historical record. The Federal Reserve announced at its latest policy meeting that it will keep interest rates unchanged and hinted that it may cut interest rates twice this year, while slowing down the pace of reducing its balance sheet. This series of measures triggered a pullback in the US dollar and a decline in US bond yields, providing upward momentum for gold prices. With the resurgence of geopolitical risks in the Middle East and the decrease in fuel inventories according to US government data, international oil prices have rebounded. WTI crude oil continued to rise after the release of EIA data, ultimately closing up 0.72% at $67.02 per barrel; Brent crude oil recovered from the 70 mark, closing up 0.71% at $70.56 per barrel.

 

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