The US dollar expands its downward space on Wednesday Gold prices hit a new historical high before falling sharply

On Wednesday (July 17th), due to signs of weakness in the US economy, expectations of a Federal Reserve interest rate cut rebounded, and the US dollar index fell to a four month low, ultimately closing down 0.49% at 103.73. The benchmark 10-year US Treasury yield closed at 4.1610%, and the two-year US Treasury yield closed at 4.4460%.

On Wednesday (July 17th), gold prices surged and fell back. From a fundamental perspective, there was no obvious bearish news, and the significant decline in gold prices may be due to profit taking by bulls. Relatively speaking, Fed officials continued to deliver dovish speeches this week, and the latest US real estate data also performed poorly. The Fed's brown book shows that businesses expect future growth to slow down, the labor market continues to be weak, the US dollar index has fallen to a nearly four month low, and US bond yields continue to weaken. All of these have limited the short-term downside space for gold prices and are expected to provide opportunities for them to further rise.

On Wednesday (July 17th), WTI crude oil closed up 1.03% at $81.57 per barrel due to a higher than expected decline in US crude oil inventories; Brent crude oil ultimately closed up 1.57% at $85.13 per barrel.