The virtual financial trading market Dragon Age of precious metalsin this world has long become a special product of self-growth, self-expansion, self-preservation, and self-appreciation. Gold trading is not a simple commodity trading, it is a vane reflecting the entire virtual financial trading market. The primary purpose of participating in gold investment is to preserve the value of our banknotes and avoid risks.
In addition, the better-than-expected US consumer confidence index released on the same day also contributed to the gold price. According to a report jointly issued by the University of Michigan and Reuters on the 9th, benefiting from the continued signs of improvement in the job market, the final value of consumer confidence in the United States in November was 84.9, higher than 82.6 in October, and better than economists’ average expectations. 82.9, the highest level since July 2007.
On the same day, the price of silver futures for delivery in May fell 1.121 US dollars to close at 31.834 US dollars per ounce, a decrease of 3.4%. The price of platinum futures for delivery in April fell 30.4 US dollars an ounce to close at 1654.3 US dollars, a decrease of 1.8%.
VisionFinancialMarkets metal trading department director David Meger said that lower gold prices indicate that safe-haven assets are being sold, and risk sentiment prevails today. However, favorable factors such as European debt and concerns about the economic outlook have not disappeared. Therefore, this fall is only a short-term correction in the long-term upward trend of gold prices.
The author believes that this will not happen, after all, there is cost price under gold as support. Institutional investigations show that the price of gold needs to be supported at US$1,300 per ounce, otherwise a considerable number of gold mines will be put at risk. As countries drastically implement loose monetary policies to promote economic development and the demand for hedging is weakened, the charm of the gold market will also weaken, and prices will return to a rational zone.
On July 13, the New York Mercantile Exchange (COMEX) gold futures hit an all-time high closing price. On the same day, the main COMEX gold futures contract closed at $1585.50 per ounce, an increase of 1.5%. Market participants pointed out that gold futures have been hovering at a high level since this year. Affected by the possible introduction of a new round of economic stimulus measures by the United States and the continued deterioration of the European debt crisis, gold hit a record high. Analysts predict that gold futures will continue to have a strong hedging function, highlighting Everbright Futures analyst Sun Yonggang in an interview with a reporter from the International Finance News yesterday: The recent surge in gold has been driven by both hedging demand and inflation resistance. Beijing mid-term futures analyst Wu Zhengzheng also pointed out that the gold investment demand first comes from the currency credit crisis. The ever-expanding debt crisis has made market investors lose confidence in core currencies such as the euro and the US dollar and switched to gold as a safe-haven investment. Fitch Ratings downgraded Greece's long-term foreign currency and local currency issuer default rating from B+ to CCC on July 13, which is only one level higher than the default rating. Earlier, the euro zone finance ministers publicly admitted that Greece's debt may experience some form of default, thereby helping the country to reduce its debt. However, what is worrying is that the European debt crisis has spread from small euro zone countries to core countries such as Italy. Wu Zhengzheng pointed out: Affected by the European debt crisis, gold futures have been at a high level since the beginning of the year. Even if other commodity futures have experienced a collective correction, gold futures have not followed the trend, showing that the demand for hedging has been supporting gold prices. At the same time, the US dollar, which has a hedging function like gold, has also suffered a credit blow. On July 13, the international rating agency Moody's announced the inclusion of the 3A rating of US Treasury bonds on the watch list. The agency believes that the US Congress may not be able to reach an agreement to raise the debt ceiling on time. On the same day, the US dollar index of the Intercontinental Exchange (ICE) dropped from 76.028 points to 75.225 points. Resisting inflation expectations In addition to safe-haven demand, gold demand also comes from resisting inflation expectations. On July 13, Fed Chairman Ben Bernanke stated that the Fed will continue to maintain interest rates at an extremely low level for a long period of time. At the same time, if the US economic situation continues to deteriorate and deflation occurs again, the Fed may take more measures to further relax the current monetary policy to stimulate the economy, including the introduction of QE3. Wu Zhengzheng pointed out: After the financial crisis, the rise in commodity futures was mainly affected by the centralized economic stimulus policies of various countries, and the flood of market liquidity raised commodity prices. If the United States continues to launch QE3, market liquidity is bound to remain relatively abundant, and inflation will continue to be pushed up. Currently, not only emerging developers are suffering from inflation, but European developed countries are also entering the anti-inflation queue. On July 14, India’s Ministry of Commerce announced that the country’s June inflation rate rose to 9.44%. On the same day, the European Central Bank (ECB) issued a regular monthly report highlighting the risks of upward inflation, and it is expected that inflation may continue to remain above 2% in the next few months. Gold has always been considered a weapon against inflation. On July 13, SPDRGoldTrust, the world's largest gold exchange traded fund (ETFDragon Age of precious metals), increased its holdings of gold by 20 tons, and its holdings reached 1,225.41 tons, the highest level in two months. The market outlook is expected to surpass the strong growth of gold, and the bullish pattern will not change. Sun Yonggang said that from a purely technical analysis point of view, the international gold price will rush to a high of US$1620 per ounce in the next step. Wu Zhengzheng believes: At the beginning of the year, we predicted that the price of gold futures this year will reach US$1,300 to US$1,600 per ounce. At present, the international gold price has reached the upper line we predicted, and the price of gold will remain strong in the future. Analysts also pointed out that there are certain risks in high gold prices. Sun Yonggang pointed out that for international gold prices, the biggest risk is still the dollar. Bernanke's speech just assumed a possibility that the actual introduction of a looser monetary policy by the United States is still uncertain. And if the U.S. dollar remains strong, the real economy continues to recover, and inflation is further contained, the golden age of rising may be coming to an end. He reminded investors to be cautious about bullish gold: At present, they should keep their positions within a controllable range, and once QE3 is launched, investors can rest assured to increase their positions. (Source: People's Daily Online-International Finance News)
Under the background that the global financial crisis has not yet passed, but the domestic and foreign raw material prices continue to rise, yesterday the Ministry of Industry and Information Technology (hereinafter referred to as the Ministry of Industry and Information Technology) website issued the "Guiding Opinions on Further Strengthening the Management of Raw Materials Industry", (hereinafter referred to as "opinion"). The "Opinions" clearly promote the restructuring of industries such as steel, nonferrous metals, and gold, and eliminate the system and policy obstacles that restrict corporate mergers and acquisitions as soon as possible.
At the cusp of this storm, the reporter went to the Precious Metals Management Office of the Financial Services Office of the Tianjin Municipal People’s Government. The spokesperson said in response to the reporter: We are actively responding to the rectification order and introduced a plan for rectification and reform, which will be reported to the State Council in the near future; but the details are not. Convenient to disclose.