The interest rate cuts the dollar and the price of gold rises. Will the property market be soft?
The United States is likely to cut interest rates, the dollar fell, and the funds left the dollar into the currency such as gold and the yen. After the end of the year, the price of gold rose significantly. As gold and residential properties are the same, despite the social problems and the Sino-US struggle in Hong Kong, the residential property market is still supported by buyers.
On June 19th, the US Federal Reserve held a meeting on interest rates. The interest rate statement decided to keep interest rates unchanged, and the federal funds rate target range remained at 2.25 to 2.5%. From the Fed dot-matrix chart, one of the 17 officials is expected to cut interest rates once this year and 7 are expected to cut interest rates twice.
Before the interest rate decision, the US dollar index has weakened, from 98.26 points at the end of May, and fell below the support level to 95.36 points, a drop of 2.95%, and the weakest performance against gold and the yen. The quiet and long-term gold has been aggressive in the near future. It doesn’t take a week for every ounce to rise from $1,345 to $1,431, or $86 or 6.39% to a six-year high, and then to sink at $1,400. Residential properties are the same as gold, and interest-free gold prices can rise, and properties with rental income should have better performance. Market capital flows to properties and gold and other physical objects are highly likely.
Many investment banks believe that the poor economy of the United States may implement interest rate cuts in the short term because the US economic data released recently is not ideal, and US President Trump also hopes the Fed will cut interest rates and reduce the US in the second half of the year. Interest will become a reality. Coupled with the recent surge in the total debt of the US government and nationals, it has risen to an outrageous record of $73.69 trillion, and interest rate cuts will help the overall US interest expense.
US Finance Minister Nuchin also suggested that if congressional leaders are unable to reach a consensus on spending budget, they hope that they will agree to exempt the government from complying with the national debt ceiling requirement for one year, in order to avoid the US government’s relapse into default and possible partial closure. This shows that the US government is very “tight" and expects to cut interest rates and save.
Trump’s trade war has not only hit China’s and Hong Kong’s economies, but the United States itself has been dragged down to the depths of the mud. The economic downturn is certainly not good for Hong Kong, as overall income has fallen. However, from another perspective, the United States has cut interest rates. The pressure on interest rate hikes in the United States has disappeared in Hong Kong for more than three years. The mortgage-payers will not have to worry about the counter-attack in the foreseeable future. The mortgage payments will remain low. Rate level. The interest-bearing expenditures continued to ease, which made Hong Kong’s property market more attractive, and the market outlook was better. Recently, the leading index of the Central Plains City has once again broken to 190.48 points.