In addition to the Fed's interest rate decision, the economic data of other countries and regions to be announced next week will provide clues to the strength of other economies. Some economies seem to The best platform for precious metals tradingbe afraid of outflows of investment funds, because higher US interest rates make US assets more attractive. In particular, investment funds in emerging markets have begun to flow out, and their currencies and other assets have plummeted this year.
However, there was good news. Zheng Zhiguang, general manager of the precious metals business department of Industrial and Commercial Bank of China (ICBC), said on Monday (June 11) that as buyers seek safe-haven amid the European debt crisis and the depreciation of the euro, demand for gold investment is expected to rise by more than 10% this year.
On Monday (July 15) late in New York City, spot gold fell slightly to 1,284.85 US dollars per ounce. Gold prices fluctuated very sharply during the day. Gold prices in the Asian market rose all the way, oscillating down after hitting as high as $1,294.74 per ounce; the US dollar index became stronger during the European and American hours, which put gold prices under pressure and hit a daily low of $1273.85 per ounce; Boosted by weak US retail data, gold prices rebounded sharply. Whether the price of gold can continue the rebound since the end of June depends on the testimony of Bernanke on Wednesday (July 17).
The movie market usually sells word-of-mouth in the first episode, box office in the second episode, and can't sell in the third episode. The troubles of U.S. Federal Reserve Chairman Bernanke are as simple as that, if the third episode of loose monetary policy is launched, it will sell. What to do if you don't go out. Nevertheless, the current market believes that Bernanke will continue to "remain on a dog". If so, the price of gold is expected to challenge $1,800 in the second half of the year, and the price of silver is expected to reach $45. Hong Kong Commercial Daily reporter Huo Jia
The report pointed out that, according to data released by the International Monetary Fund (IMF), Mexico has increased its gold reserves by 93.1 tons so far this year, some of which were bought in February, and most were bought in March. The increase in gold reserves of Russia, Thailand and Belarus was 22.5 tons, 9.3 tons and 2.5 tons respectively.
Walter Bucky Hellwig, who is in charge of 17 billion US dollars in assThe best platform for precious metals tradingets by BB&TWealth Management, said that everything stems from easing policies, which is the biggest driving force for investors to bullish gold. The market is waiting for further moves from the Fed.
The drop in gold and silver is closely related to the sharp drop in international crude oil futures prices. Manager Huang of the Retail Wealth Management Department of the Fuzhou Branch of Minsheng Bank stated that the International Energy Agency (IEA) announced on the evening of the 23rd that it would release 60 million barrels of strategic crude oil reserves in the next month in response to the reduction in Libyan crude oil production. Affected by this, the price of light crude oil futures for delivery in August on the New York Mercantile Exchange plummeted, reaching a minimum of $89.69 that night and closing at $91.02, a drop of 4.6%. The decline in crude oil prices led to a rebound in the US dollar index, and the cumulative increase in the US dollar index over the three trading days was about 1% yesterday. The drop in international crude oil prices will ease global inflationary pressures and weaken market risk aversion, putting pressure on gold prices.
May 16 is the day when the total US federal debt reaches the upper limit of 14.29 trillion US dollars. US Treasury Secretary Geithner recently stated in a letter to the leaders of the Senate that the Treasury Department will take urgent measures to reallocate funds to continue to make payments. These measures, including the temporary misappropriation of federal pension funds, can keep the government running until August 2. Geithner warned that if the US Congress does not reach an agreement on raising the debt ceiling by then, disastrous consequences will occur.
In addition, researchers from Haitong Futures told reporters that the euro zone debt crisis is still developing and spreading, and the entire EU economy will face more severe challenges. Against the backdrop of dire prospects for the two major reserve currencies, the US dollar and the euro, the safe-haven demand for gold is naturally fully recognized and explored by the market.