The E Fund Gold Miners ETF (02824) has fallen close to 4%. As of the time of writing, it is down 3.85% to HKD 9.48, with a turnover of HKD 1.9752 million.
On the news front, the new Federal Reserve Chair, Wash, made his debut in the early hours of Thursday, June 18th, Beijing time. Huatai Securities noted that the Fed announced its June policy meeting decision, keeping the policy rate steady at 3.5-3.75%. The dot plot indicated a possible preemptive rate hike in 2026. During his press conference, Wash's statements on forward guidance and Fed operations were largely consistent with previous remarks. He also announced the establishment of five working groups, including one on monetary policy communication, fulfilling his commitment to reforming the central bank.
Notably, this marks the fourth consecutive pause in rate hikes by the Fed, but the stance has shifted to a neutral-to-hawkish bias. As of June 17th, international precious metals futures were broadly lower, with the international gold price falling below $4,300 per ounce.
Galaxy Futures commented that, considering the overall inflation data performance and the decline in oil prices, current macro pressures appear to be at a peak and may subsequently ease. While the FOMC meeting leaned hawkish, Chair Wash himself did not signal an even more aggressive stance. Post-meeting, asset volatility may increase. For precious metals, the most significant catalyst ahead is the finalization of the US-Iran agreement. Following that, a prolonged period of volatile, low-volatility trading may ensue.
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