The day before, BernankNew Balance precious metalse had accepted a hearing in the House of Representatives and clarified the Fed’s attitude towards slowing down and withdrawing from quantitative easing and raising interest rates. According to previous experience, these two hearings are called Humphrey-Hawkinstestimony. The first day of the hearing had a major impact on the market, and the second day was basically a copy of the former.
The silver futures price for December delivery fell 1.067 US dollars that day to close at 31.884 US dollars an ounce, a decrease of 3.2%. The price of platinum futures for January delivery fell 12.7 US dollars an ounce to close at 1558.3 US dollars, a decrease of 0.8%.
Earlier, Boston Fed Chairman Eric S. Rosengren said in an interview with the media that the US economy can only be said to be stagnant, and the economic outlook means that the Fed needs to take further quantitative easing (QE) measures, but he No voting rights this year.
Ronald Leung, head of LeeCheongGoldDealers, said that due to the stock market rebound, the gold price at $900 per ounce is not attractive to investors. But investors also don't want to sell gold because the uncertainty of the global economy is still there. The price of gold needs to fall to US$875/ounce to attract buying, including jeweller buying, or rise to US$900/ounce to trigger selling.
The Wall Street Journal reported on Tuesday that the Fed is expected to reduce its bond purchases for the second time in two months at its meeting next week. Analysts said that the market believes that this move constitutes a negative for gold prices, because some investors buy gold assets to resist inflation, and further reduction in debt purchases may reduce inflationary pressures.
In the context of the continued global economiNew Balance precious metalsc instability and the general elections in China and the United States, the rising trend of gold demand in the past 5 years can clearly reflect that gold will continue to maintain its basic attributes of asset preservation tools, while global gold ETF investment increased by 56% this quarter And as long-term investors, the continued gold buying activities of central banks of various countries can prove this.
Throughout November, I opened my eyes almost every day and found news from across the ocean that the international gold price hit a new high. A gold industry insider told reporters, but in December, after gold hit a record high, it took a sharp turn and plunged by more than $100, which caught people by surprise.
In addition, platinum and palladium also rose 2% and 2.6% respectively. This time, the rise of these industrial metals was not driven by demand optimism caused by economic growth, but was driven by the sell-off of the US dollar and the Fed’s endless talk of loose monetary policy after people habitually reinvested funds into commodities.