The global central bank's "interest rate cut trend" is surging Gold rebonded strongly

On Wednesday (June 5th), due to the largest increase in the US corporate activity index in three years, the US dollar index fluctuated and strengthened, ultimately closing 0.14% higher at 104.30. The 10-year US Treasury yield continued its decline and ultimately closed at 4.2800%. The yield on the 2-year US Treasury, which is most sensitive to the Federal Reserve's policy interest rates, ultimately closed at 4.7280%.

On Wednesday (June 5), the gold price rose more than 1% to close at 2354.99 dollars/ounce. The US private employment data released earlier was weaker than expected, strengthening the expectation that the Federal Reserve will cut interest rates later this year, and the yield of US treasury bond bonds fell. In addition, the Bank of Canada cut interest rates by 25 basis points on Wednesday, and the market expects the European Central Bank to also cut rates on Thursday. It seems that global central banks will usher in a “rate cutting trend”, and the opportunity cost of holding gold will decrease, which is expected to help gold prices open up a new round of upward trend.

WTI crude oil rebounded significantly on Wednesday (June 5th), ending its 5-day decline and ultimately closing up 1.93% at $74.24 per barrel; Brent crude oil closed up 1.95% on Wednesday (June 5th) at $78.59 per barrel.