Everbright Futures: Small Non-Farm Payrolls Slightly Surpass Expectations, Gold Prices Continue to Face Downward Pressure

In geopolitical developments, the U.S. House of Representatives has passed a resolution to limit Trump’s authority to carry out military action against Iran. Trump again said that progress in negotiations with Iran is “very smooth,” and that the deal is “very close.” However, Kuwait closed its airspace due to Iranian attacks, stirring up fresh turbulence in the Middle East conflict and raising market concerns. The navigation issue in the Strait of Hormuz may persist until September. This also means that crude oil prices may remain high, inflation expectations may continue, and the Federal Reserve’s hawkish outlook is hard to avoid, which will weigh on gold prices. In the medium term, investors should focus on the Federal Reserve’s June policy-meeting guidance and take a cautious view, continuing to lower expectations for the first half of the year. (Everbright Futures)
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