Precious metal
Ilya Spivak, currency strategist at DailyFX, said gold prices fell from previous highs as bond yields rebounded, but the performance of yields did not affect the dollar, which continued to provide support for the weak performance of the dollar. Spivak points out that the higher inflation rises, the harder it will be for the Fed to ignore it and the worse it will be for gold. "technically, the gold trend is still on the downside."
Wang Tao, a technical analyst, pointed out that after failing to really break through the 1785 mark, spot gold prices could fall back to the $1744-$1758 / oz region.
Katerina Bakh Simonetti, a portfolio manager and private financial adviser at Morgan Stanley, said gold is still an important tool for portfolios to aggregate hedging risks.
Jeff Wright, chief investment officer of Wolfpack Capital, said that the short-selling trend in the gold market last week was over, the market lacked strong momentum to push up gold prices, and gold prices needed to look for new catalysts before making any new direction choices.
Foreign exchange market
(Capital Economics) economists at Capital Macro believe that continuing policy differences could support the dollar and expect Treasury yields to eventually return to rising momentum and once again surpass most other major economies, putting new upward pressure on the dollar.
Jason Williams, a strategist at CITI, said, "the tail risk exists because the core PCE price index is likely to well exceed 2% in the next year or two, which may lead to a faster rate hike cycle, and we believe that the leveling of the bull market at the short end of the curve is not sustainable in the short term." He advises clients to use the options market to make conditional bets on a steeper bull market and make a profit if interest rate hikes are expected to pick up. 'This includes buying Eurodollar futures call options that expire in June 2023 and selling counterpart contracts that expire in 2024 at a strike price of 99.625,'he wrote in the report.
"the rise in bond prices last Thursday may be partly due to the rapid departure of short funds," analysts at TD Securities (TD Securities) wrote in a recent report.
Subadra Rajappa, head of US interest rate strategy at Soci é t é G é n é rale, said recent developments in the bond market involved hedging operations and increased debt by large banks-due to billions of bonds issued by Bank of America, JD Morgan and Goldman Sachs last week.
"in a bear market, you can see a sharp rebound in prices," said Tim Magnusson, senior investment manager at Garda Capital Partners. But in the coming months, you will see higher yields than today. "
David Kelly, chief global strategist at JPMorgan Asset Management, said that even if the timing did not prove that Treasuries looked unsustainable at these levels, "eventually, there will be situations in which the economy cannot support 10-year Treasury yields below 2 per cent within a year."
