Fed Holds Rates Steady, USD Strengthens; Gold Hits Monthly Low, Oil Surges Nearly 9%

On Wednesday, the US dollar index continued to strengthen during the day. With the release of the Federal Reserve's interest rate decision, the US dollar index briefly rose to the 99 level during trading, but failed to stay above this level and ultimately closed up 0.31% at 98.94; The benchmark 10-year Treasury yield closed at 4.434%, while the 2-year Treasury yield sensitive to the Federal Reserve policy rate closed at 3.965%. On Wednesday (April 29th), spot gold prices continued their recent decline, dropping as much as 1.17% and ultimately closing at $4543 per ounce. During trading, they even hit a low of $4510.21, the lowest point in a month since late March. The Federal Reserve's interest rate decision leans towards hawkishness, the Middle East war continues, oil prices have risen sharply, inflation concerns have once again intensified, and market expectations of a Fed rate cut this year have basically disappeared. The expectation of a rate hike has increased, providing upward momentum for the US dollar and significantly suppressing gold prices. Due to the deadlock in the US Iran negotiations, investors' concerns about long-term supply disruptions in the Middle East have intensified, leading to a surge in international oil prices. WTI crude oil surged nearly 9% during the day, starting its upward trend during the European trading session and rising above $110, ultimately closing up 8.66% at $110.18 per barrel; Brent crude oil ultimately closed up 6.83% at $111.02 per barrel.