The US dollar fell, while gold surged to $4200 amid falling bond yields and Fed rate cut expectation

On Wednesday, as traders assessed the impact of the release of a large amount of economic data on the Federal Reserve's interest rate policy after the US government resumed operations, the US dollar index first rose and then fell, eventually closing close close at 99.46; The final yield of the benchmark 10-year US Treasury bond was 4.075%, while the yield of the 2-year Treasury bond sensitive to the Federal Reserve policy rate was 3.576%; The US dollar rose to 155 against the Japanese yen for the first time since February. On Wednesday (November 12th), gold prices surged nearly 2% in a single day, breaking through the key position of $4160 per ounce and hitting a high of $4211 during trading, reaching the highest level since October 21st. The dawn of the US government shutdown is beginning to emerge, the data black hole is about to be filled, and signals of economic weakness are frequent. Expectations of interest rate cuts cannot be ignored, providing upward momentum for gold prices. Due to OPEC's report stating that global oil supply will match demand by 2026, marking a further shift in its forecast from supply shortages to supply-demand balance, crude oil prices have fallen in response. WTI crude oil fluctuated downward throughout the day and accelerated its decline before the US market, falling to a intraday low of $58.28 at one point before finally closing down 4.14% at $58.44 per barrel. In addition, the real-time spread of WTI crude oil has turned into a premium for the first time since February; Brent crude oil ultimately closed down 3.79% at $62.43 per barrel.