Korea Exchange triggered the KOSPI index sidecar mechanism, suspending program trading for five minutes.

According to Bitget market data, South Korea’s KOSPI index has extended its downward trajectory, with its intraday decline expanding to 8% and a cumulative drop of 35% so far this month. SK Hynix’s intraday slump widened to nearly 12%, while Samsung Electronics fell 7.5%.

According to a Reuters survey, analysts have cut their gold price forecasts for the first time since the end of 2023. Twenty-nine analysts and traders project an average gold price of $4,509 per ounce in 2026, down from the $4,916 forecast three months ago; the 2027 average forecast has been lowered to $4,610 per ounce, from the earlier $5,100. Despite the downward gold price projections, the market widely holds that central banks’ continued gold purchases, geopolitical risks, and government debt pressures will still underpin gold’s long-term trajectory. Meanwhile, analysts have also trimmed their silver price forecasts, projecting a 2026 average of $72 per ounce, down from the prior $78. Furthermore, Commerzbank has once again cut its end-of-year gold target price to $4,500 per ounce, and lowered its silver target price to $67 per ounce. The bank argues that current market expectations for further Federal Reserve policy tightening are overblown; if inflationary pressures ease and the Fed keeps interest rates unchanged, gold is still poised to strengthen again in the future.

Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute, said the Federal Reserve is expected to hold interest rates steady. June’s easing inflation has given policymakers the opportunity to extend the pause in rate hikes while waiting for more data. Luis Alvarado, co-head of global fixed income strategy at the institute, noted that Walsh has clearly stated: “Bringing inflation back to 2% remains the Federal Reserve’s top priority, and policymakers have almost zero tolerance for a rebound in price pressures. We believe he genuinely believes the Fed can achieve this goal.” Alvarado added that the biggest change Walsh may bring lies in his communication approach, especially forward guidance. Investors should expect increased policy flexibility and greater market volatility between meetings. For Walsh, the ability to act and respond flexibly based on changing conditions remains critical. (Source: Jin10)

According to Bitget market data, Changxin Technology saw an intraday gain of 4.64%, pushing its market capitalization to 3.29 trillion yuan. Multiple South Korean media outlets have linked the sharp plunge in South Korea's stock market to the listing of Changxin, China's largest semiconductor company. Market concerns that Changxin will use funds raised from its IPO to catch up with semiconductor giants including Samsung Electronics and SK Hynix have spread, dampening investor sentiment. Peter Alexander, an analyst at Z-Ben Advisors, stated that following the development trajectories of sectors like steel and new energy vehicles, Changxin will quickly seize market share in the low-end storage chip market and eventually challenge the global monopoly held by Samsung, SK Hynix, and Micron Technology in the storage industry.

According to CNBC, most market observers expect Federal Reserve Chair Kevin Warsh to hold interest rates steady at this week’s FOMC meeting. Former banking analyst Meredith Whitney also noted that U.S. consumers are grappling with rising energy costs and slowing credit card spending, giving the Fed more time to monitor economic trends. The report added that while markets remain concerned about inflationary pressures, Warsh prefers to wait for more data. He has previously stated that rising energy prices constitute a supply shock and should not automatically trigger monetary policy adjustments, while arguing that cost increases from AI investments may not evolve into sustained inflation. In addition, Warsh has recently established multiple external expert working groups to advance reforms to the Fed’s policy framework, inflation assessment, balance sheet, and other areas. Analysts believe that a hasty interest rate hike before the reforms are completed could weaken the Fed’s policy maneuverability, while ongoing political pressure from the Trump administration calling for rate cuts also makes Warsh more likely to keep rates steady and continue sending hawkish signals to retain flexibility for future policy adjustments.

South Korean exchanges activated the circuit breaker mechanism for the KOSDAQ index, suspending trading for 20 minutes.