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Gold Prices Rebound Or Limited Space Trend Continues To Rise

2014/2/12 10:21:00 38

late December 2013, gold prices rebounded, with a cumulative increase of 5%. Although the rally was not large, it lasted for 7 weeks and was rare for more than a year. At this time, the controversy over whether gold was wrongly killed in the past year has been rising. 
 industry analysts pointed out that the decline in global stock market and the poor performance of US economic data caused gold to be supported by some hedge buying activities, and China's demand for physical gold was strong and the world's largest SPDR gold ETF holdings increased slightly to boost gold prices. It should not be overlooked that the dollar index is still one of the factors that affect gold prices. The Fed's QE cuts have added uncertainty to the price of gold. 
 gold price continued to rebound in the near future 
During the closing period of the A stock market during the Spring Festival, the global stock market plunged, < a href= "http://sjfzxm.com/news/index_cj.as > > Gold < /a > the price was strong but p. In fact, the gold price continued the previous rebound trend, lasted for 7 weeks. 
 Xu Yongqi, a metal analyst at Guotai Junan Futures Research Institute, told the daily economic news, "the continuous rise in the price of gold is based on the following reasons. First, the fund has a profit requirement before the end of the year. It is an active short subsidy. Two, some investment banks made certain buying moves before the end of the year to compensate for a certain physical exposure, such as JP Morgan and faxing bank. Three, seasonal factors such as the arrival of the Spring Festival in China, the domestic people's desire to buy gold is stronger. The above factors make the price of gold easy to rise and fall in the near future. 
 reporters learned that gold prices fell all the way in 2013. The world's largest gold ETF fund, the US SPDRGoldTrust holdings, showed a downward trend, declining from 1350.82 tons in early 2013 to 798.22 tons at the end of the year, a decrease of 40%. There are indications that the recent decline in gold ETF Holdings has slowed down. In mid January, gold ETF holdings fell to 789.55 tons, and then slightly increased. As of February 9th this year, gold ETF holdings were 797.05 tons, easing the pressure of continued downward pressure. 
At the same time, the physical gold market in China will catch up with the P again. With the arrival of the Chinese traditional festival, the "Chinese mother" once again showed strong purchasing power. Unlike previous rounds of buying gold, the price of gold has fallen sharply, which is near the low point since last year. 
 strong > a href= < http://sjfzxm.com/news/index_cj.as > gold price < /a > rebound or insufficient power /p >
 basically, the World Gold Council has recently confirmed that the cost of gold production is about $1200 per ounce. JuanCarlosArtigas, director of investment research at WGC, believes that once gold prices fall below this level, the production of mining enterprises will be greatly affected. 
 analysts have told the daily economic news that the cost of gold calculated in accordance with international common standards is 900~1050 US dollars / ounce, so that gold will not fall sharply as it did last year. But it is not ruled out that the two or three quarter of this year will challenge the possibility of another 1180 US dollars / ounce. 
 however, gold is not only a commodity attribute. Because gold price is directly linked to the US dollar, we must closely follow the trend of the Federal Reserve to grasp the gold trend. A precious metal researcher of an investment company pointed out: "from the perspective of the correlation between us dollar and gold, although the correlation between the two years has weakened, the long period cycle still shows a reverse correlation. In the medium to long term, as the United States continues to strengthen the expectation of QE exit, it may adjust interest rates by 2015, and with the coming of the interest rate cycle, it means opening the big cycle of US dollar rise. " 
 Xu Yongqi said, "a href=" http://sjfzxm.com/news/index_cj.as "> market < /a > is expected to be stronger and stronger for the Federal Reserve to withdraw from QE steadily, so that the space for gold to rise is very limited. With the beginning of a regular monetary policy management in the United States, the United States will also affect the adjustment of subsequent monetary policies in developed countries, including Britain and other developed countries, which will lead to changes in the net capital outflow of emerging countries such as China, Brazil and Russia, leading to a decline in the stock market and currency devaluation. The slowdown in the appreciation of the renminbi will affect the central bank's settlement of gold consumption. 
 in addition, the analysts also said that because of the unsatisfactory returns of the index funds for investment in precious metals last year, the index has been adjusted this year to reduce the investment weight of gold, so the driving force of gold prices at the financial level is not particularly sufficient.