Daily

On January 6th

Today's range

Gold retracted near 1860 on fears of a more aggressive Fed rate hike after good U.S. labor data showed a tight labor market, pushing up wages and supporting inflation. Gold is expected to swing around $1,840 before testing highs again. Today's recommended range is $1824 to $1842.

Hong Kong and China will resume customs clearance on August 8. The Chief Executive, Mr Lee Ka-chiu, announced more arrangements yesterday. About 60,000 people a day will be able to make reservations to go north through the system. He said that if the first stage is safe, orderly and smooth, the implementation of the next stage of customs clearance will be accelerated. The cap will be relaxed to 50,000 each. The Hong Kong stock market opened more than 500 points higher and rose as much as 602 points ahead of the upcoming customs clearance, but investors took advantage of the high count to pare gains to 259 points, or 1.3 percent, at 21,052, with daily turnover rising to $174.164 billion.

Last night, the US small non-farm data showed the tight labor market, the market expectations of the Fed interest rate increase, coupled with the international oil price rebound of nearly 1%, the European Central Bank's interest rate situation turned hawkish, the market expects that the European Central Bank will follow the pace of the Fed, hit the risk market sentiment, the three major European stock markets were mixed, the German DAX index fell 0.49%; France's CAC index in Paris fell 0.18 percent. Britain's FTSE 100 index rose 0.72 percent on news that British Prime Minister William Wilson announced the government's New Year goals and promised to boost the domestic economy.

Last night, the US non-farm data for December last year came out, the latest number increased by more than 50,000 from November, and exceeded market expectations by more than 60 percent. In addition, initial jobless claims fell by nearly 200,000, hitting the lowest level since late September last year. The economic data reinforced the possibility that the Fed will continue to tighten policy. The Dow Jones Industrial Average fell 1.02%. The S&P 500 fell 1.16% and the Nasdaq composite fell 1.47%.

The gold market as early as six months since the high pressure, yesterday was stepped on more feet, fell through the $1840 close. Gold had begun to fall in the Asian session after the release of last month's non-farm data and weekly jobless claims both pointed to labor market tightness, triggering expectations of another steep Fed rate hike in February. The dollar index returned to the 105-point level and gold traded as low as 1,825.1 and as high as $1,859 to close at $1,832.7. Down 22 dollars.

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