US debt downgraded

Fitch downgraded the United States' highest AAA credit rating to AA+ in a report released early Wednesday Beijing time, reflecting its deteriorating fiscal situation. Fitch stated that over the past 20 years, the governance level in the United States has been eroded compared to countries rated "AA" and "AAA," as evidenced by repeated debt ceiling standoffs and last-minute resolutions. However, U.S. Treasury Secretary Janet Yellen immediately expressed disagreement with this decision.

The Federal Reserve's Senior Loan Officer Opinion Survey (SLOOS) released on Monday (July 31st) revealed that U.S. banks reported tightening credit standards and weak loan demand in the second quarter, indicating that rising interest rates are impacting the economy. The survey also indicated that banks expect to further tighten standards for the remaining time in 2023.

Overall, the current market sentiment remains cautious about the potential adverse effects of the Federal Reserve's ongoing interest rate hikes on the economy. The likelihood of interest rates peaking and eventually declining is considered high. Therefore, it is still recommended to focus on buying precious metals on dips.