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What is the margin of the China Economic Commodity Trading Center
[Jinyou.com] Professional rebate website, trustworthy] The China Economic Commodity Trading Center (hereinafter referred to as the trading center) is sponsored by the Economic Daily, an official newspaper of the State Council. 》News Agency and China Economic Network initiated the establishment of a national commodity electronic trading platform located in the cross-strait financial center of Xiamen. The trading center was approved and registered by the State Administration for Industry and Commerce in March 2019 (registered name Pre-Approval No. 3), and was established with the approval of the Xiamen Municipal People's Government in 2016 (Xiamen Government Document No. 3). The trading center is supervised by the Xiamen Financial Coordination Service Office. It is an important strategic deployment of the Economic Daily and China Economic Network to build a national commodity factor platform, and is also an important part of the cross-strait financial system.
The Federal Reserve’s interest rate decision is coming soon. What impact will the interest rate decision have on silver?
The Federal Reserve is the abbreviation of the U.S. Federal Reserve System. Although it is not a state agency, it performs the duties of the U.S. central bank. The Federal Reserve's interest rate decisions are announced eight times a year. The Federal Reserve's interest rate decisions have a major impact on the U.S. economy, currency and even the world economy. Since it has an impact on the U.S. economy and currency, it will naturally drive changes in silver prices.
At three o'clock in the morning on the day of the year, Beijing time, another interest rate decision is about to be announced. The Federal Open Market Committee determines the federal funds rate by holding discussions and voting. If the interest rate rises, it means that the economy is very active, the economy is growing rapidly, the return on investment is high, and the entire market is in a stage of vigorous development. This approach is good for the US dollar, and the US dollar and spot silver prices are negatively correlated. Therefore, raising interest rates will lead to negative spot silver prices. On the contrary, if interest rates are lowered, it means that the U.S. economy is in decline, which is bad for the US dollar and good for silver.
Federal Reserve Chairman Yellen has been known for her caution since taking office in January. It has maintained a dovish style in terms of interest rate decisions and other aspects. Since the beginning of the year, interest rates have remained flat even as the U.S. economy has recovered. The rise of hawks may become a bargaining chip to raise interest rates early. However, authoritative institutions such as Goldman Sachs and the Wall Street Journal believe that Yellen is very likely to continue to adopt a dovish style this time, and interest rates are expected to remain unchanged.
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