On the evening of the 5th, the internationally renowned rating agency Moody's downgraded Portugal's sovereign rating from Baa1 to Ba2, with a negative outlook, and downgraded its long-term national debt rating to junk. The news once again raised investor concerns about the European debt crisis, and risk averPrecious metals market news todaysion pushed gold and the US dollar to rebound. The euro against the US dollar once broke through the 1.44 round mark, and the price of gold also rose from around 1495 US dollars to 1518 US dollars, up 23 US dollars, or 1.54%.
A2: Generally speaking, the trend of silver price is consistent with that of gold. But compared to the 2011-2012 period when the price of gold was at a high level, the price of silver has fallen lower than the price of gold. Some people say that the price of silver is undervalued, but the market always makes sense.
As far as the gold market is concerned, it seems that an increase in interest rates attracts capital to flow back to banks, which is bad for gold. This is only a one-sided understanding. Looking at the world, we believe that an increase in the interest rate of RMB deposits, and even the expectation of an increase in RMB interest rates, is a positive for the gold market, which will be transmitted through the performance of the foreign exchange market.
On the whole, Europe’s debt problems are intricately interrelated. European banks all hold more or less European sovereign bonds and credit default swaps. This makes that if any country defaults, there will be a large-scale chain reaction, which will directly lead to financial collapse and economic depression. At present, Spain and Italy are already on the verge of crisis. Therefore, the entire European Union and even the world do not want the large-scale outbreak of European problems to cause a new round of global financial crisis. Fortunately, at the G8 summit on May 19, all countries reached an agreement to unify Greece’s views on staying in the euro zone and pledged to take all necessary measures together to deal with financial turmoil. For the entire Eurozone, this can be said to be a boost to cope with the recent bad news.
In the recent round of the gold price plunge, gold and silver coins have become a safe haven for investors. Although the prices of some newly issued gold and silver coins have fallen slightly, the decline is much smaller than the international gold price. The price of the old fine and rare coins that have long been free from the fetters of gold material remains unchanged. This has caused many gold investors to pay attention to the gold and silver coin market, and the most watched of them is the panda gold and silver coins.
U.S. Secretary of State Kerry’s seemingly joking remarks turned into a mediator to avoid war in an instant. After a few rounds of moves and accepts, the two sides seemed to have a handshake. In a conversation with British Foreign Secretary Haig on September 9, Kerry said: If Damascus surrenders all its chemical weapons, it may be immune to military strikes from the White House. As soon as the speech fell, the Russian Foreign Minister Lavrov, who was in charge of the reconciliation work, made similar suggestions along the way. During his meeting with the Syrian Minister of Foreign Affairs, he stated that if Syria leaves chemical weapons in the custody of the international community, it is likely to protect Syria from external military attacks. Russia is also happy to complete the handover of chemical weapons with Syria. Subsequently, the Syrian foreign minister agreed with the Russian proposal and said that doing so would make the US aggression against Syria untenable. At the same time, the White House said that Russia’s proposal is a potentially positive development, and the Iranian Ministry of Foreign Affairs and Ministry of Foreign Affairs also expressed their seconding to the Russian proposal at regular press conferences. The US-Syrian relationship, which was originally on the line, turned around due to a joke made by Kerry, and it was implied that the market began to speculate on the true intentions of the two parties. But in any case, handing over chemical weapons has now become a way to avoid war. If it was said that it was necessary to fight before, now it seems that both fight and non-play account for 50%. As a result, the risk sentiment has changed greatly. Affected by this, the three major US stock indexes continued their upward trend the day before. Among them, the Dow Jones Industrial Index rose 130.55 points, an increase of 0.87%. Oil prices plummeted by nearly 2% due to relief from geopolitical tensions, and precious metals and other safe-haven assets also fell across the board. Among them, spot gold fell sharply by US$20.05 yesterday to US$1,363.85. It once hit a low of US$1,357.50 in the past three weeks, a drop of 1.45%. Spot silver fell by US$0.75 to US$22.89, a decrease of 3.17%. The August industrial data released yesterday showed that the economy of the world's second largest economy quickly stabilized and rebounded. The industrial added value in August increased by 10.4% over the same period of the previous year, and the growth rate rose by 0.7 percentage points from the previous month. The total amount of social financing in August reached Precious metals market news today1.6 trillion yuan, nearly double the previous month. Good economic data shows that the economy has successfully transitioned from slowing down, stabilizing, to recovering. The new generation of economic leadership team pays great attention to the adjustment of economic structure. Although the means for stabilizing growth this time is still to expand credit and strengthen infrastructure construction, it has undergone significant changes compared with the monetary easing after the 2008 financial crisis. The investment of funds pays more attention to practicality, and targeting according to the needs of the industry is the main tone of this economic stimulus plan. For example, the construction of highways and railways has received a lot of financial support, but there is rarely a large amount of capital investment in the real estate industry. Relevant data shows that investment in real estate projects in the first half of the year remained weak. From January to August this year, the newly-started residential area increased by only 3.3%. Since September, the world's largest gold ETF-SPDRgoldtrust has cut its holdings twice in a row. On September 4, it reduced its holdings by 1.8 tons to 919.23 tons; on September 10, it reduced its holdings by 2.1 tons to 917.13 tons, a 0.42% reduction this month. Technically, gold tested the support near the $1360 level yesterday and once touched a low near the $1357 level. Protected by entrenched buying orders near 1360, the close was above 1360. In the early trading of the Asian market today, gold continued to oscillate around the 1360 line of weakness and once again pierced the 1360 US dollar. The support below the daily chart is near 1350 where the 40-day moving average is located. On the graph, the 5-day line and the 10-day line turned down, and formed a cross with the 20-day line, indicating that the market outlook is still down. In addition, the Fed's Open Market Committee meeting on interest rates to be held next Tuesday and Wednesday is likely to bring bad news for gold. Regarding the Syrian issue, whether Russia's proposal is to avoid war or delay time, it will alleviate market concerns, which will severely hit the safe-haven nature of precious metals. Therefore, we believe that in the week when no major economic data is released, risk aversion will dominate the trend of gold. We recommend holding a small amount of short orders or holding a small amount of long gold contracts, while configuring short silver contracts based on comparison.
A1: Gold has not been a hot topic of discussion by financial investors for a long time, because the price has hovered for too long. After falling from a high of US$1,900 per ounce in 2012, it has maintained a level of US$1200-1300 per ounce since 2013. This trend will continue in 2015, and the bottom of the price of gold will drop even lower, even below $1100 per ounce.