Precious metals market

Precious metals market

1. Data released by the US Department of Commerce (CommerceDepartment) on Thursday showed that after seasonal adjustments, the monthly rate of construction expenditure in the United States fell by 1.3% in July, equivalent to an annual rate of $789.51 billion, which is expected to increase by 0.Precious metals market2%.

Nichols believes that the euro will eventually be replaced by a multi-currency system. The core member states of the euro zone may retain the euro, but the peripheral member states will either resume using their own currencies or use a new currency that has greatly depreciated. However, the issue of the euro will make some central banks no longer accept it as a reserve currency, making gold a more attractive investment option.

COMEX gold futures prices plunged 1.5% on Wednesday (April 10), recording the biggest one-day drop in a month and a half, affected by signs that the Federal Reserve (FED) is closer to ending the monetary stimulus plan, and Cyprus plans to sell gold reserves to raise money funds.

Scott Meyers, department manager of MFGlobal, said that the current price of gold has to be defensive. In the past few days, the price of gold has been trying to break through $1230 but failed. In fact, this is the beginning of troubles in the gold market. This has caused market participants to worry about the valuation and upside potential of gold, and the possibility of more selling in the gold market.

Judging from historical data, the total supply and total demand of physical gold have not changed much each year. From 2011 to 2019, the average annual change in physical gold supply was 3.43%; the average annual change in physical gold demand was 3.25%. The changes in both supply and demand are far smaller than the fluctuation of gold, and the impact on the price of gold is not obvious.

However, investors currently have a lot of complaints about the Gold Exchange; due to the imperfect hedging mechanism anPrecious metals marketd the loopholes in the system connection with commercial banks, the T+D market has experienced multiple jumps and jumps and quotation errors. In addition, the quotation is not accurate enough and is not fully in line with international standards; there are no complaints, and some staff members have a bad attitude and other complaints are endless.

Specter, commodity strategist at CIBC World Markets, said that macroeconomic conditions are clearly putting pressure on all asset classes, and all these uncertain factors make gold a beneficiary. However, he also pointed out that some other commodity categories may also benefit from it.

Gold yield is often independent of other financial investment products. East Securities Futures analyst Lu Jianqin once told reporters that once investment funds increase the proportion of investment in U.S. Treasury bonds, they will first consider reducing their holdings of gold. This may be one of the main reasons why bears dared to inject gold down.

Previously, the market generally expected the price of gold to exceed the $2,000 per ounce mark at the end of the year. However, the recent trend of gold has been weak. Many industry insiders said in an interview with a reporter from Nanfang Daily that according to the current market situation, unless a major risk event occurs , Otherwise it is difficult for gold to make a big difference at the end of the year. However, in the medium and long term, central banks of various countries, especially the central banks of emerging market countries, are still buying gold on a large scale, and the physical demand for gold has also maintained strong growth. In addition, European and American countries may press money to increase the economy and cause a new round of inflation. The momentum for further gains has not changed. For investors, it is recommended to rationally plan the proportion of gold in the investment library and buy gold in batches at low prices to achieve the purpose of avoiding risks and maintaining value.