Jeffrey Sica, Chief Investment Officer of SICA Wealth Management, said that the gold market is paying 100% attention to the economic slowdown. I think the current sell-off of gold is a bit excessive. The trend of gold is closely related to the probability of the US launching more economic stimuGoldco precious metals reviewlus policies. Although global economic concerns and geographic tensions should be able to provide support for gold prices, the volatility of gold prices will continue to rise.
However, many experts said that today's silver plunge was just a short-term correction, not a bubble burst. Liu Cianjun believes that the recent Chinese government's attention to commodity prices has increased the risk of high levels and increased pressure for short-term downturns. In the short term, there is a bubble in silver prices, but in the medium and long term, the price will continue to rise.
On the same day, the price of silver futures for December delivery rose 21.6 cents to close at $32.959 per ounce, an increase of 0.66%. The price of platinum futures for delivery in January 2013 rose by $12.9 to close at $1645.2 per ounce, an increase of 0.79%.
However, some analysts cautioned that the impact of this demand may not be as great as in the past, because investment demand continues to rise, and physical demand such as jewelry purchases currently accounts for only a small part of market demand. Moreover, even if the long-term trend of gold prices will go higher, this does not mean that prices will rise in a straight line. As the price of gold rises, substantial shocks will become the norm for market operations.
Under normal circumstances, the price ratio of platinum to gold is 2:1, which means that one gram of platinum can buy 2 grams of gold. Zhu Zhigang, chief analyst of Yuebao, believes that the rare gold surge now has caused the two to appear inverted. It appeared for the first time in 2008, and this is the second inversion. Since 2005, the time interval for gold prices to rise by $100 has become shorter and shorter. It used to take one or two years for every 100 US dollars to rise before, but now it only takes a few months to go from 1600 US dollars to 1700 US dollars in only 20 days.
International gold prices hit a record high of US$1,923.70 per ounce on the 6th. Behind the soaring price of gold, there is no lack of market expectations of easing global monetary policy. With the fragile economic recovery in Europe and the United States and the market's unfavorable conditions, monetary easing expectations have led to a duet of risk appetite and willingness to hedgGoldco precious metals reviewe, which has become one of the important boosters for the international gold price for a period of time.
3. Economists under the National Association for Business Economics (NABE) predict in their latest forecast that the US economy may grow by only 1.7% this year, and the association’s forecast in May is 2.8%. Economists also predict that the US economy will expand by 2.3% in 2012, which is lower than the 3.2% expected in May.
Since 2000, gold has actually followed a circular trend of one trough every 4 years. 2008 was a trough in the growth rate of gold, and it also encountered a trough in 2012. However, Peng Changkun believes that the gains in 2012 do not mean that gold has waned. The trend of gold this year is expected to go out of last year's turbulence. It can roughly look at US$1,850 and support US$1,600 below.