Gold is both a commodity and a currency, and this characteristic is more obvious than ever. OwenHegarty said that investment demand has become the number one Kur precious metals co.demand for gold, because the general public cannot find a better way to avoid shrinking assets on hand, and gold provides a popular safe haven.
In addition, this week there are three central bank interest rate decisions by the Reserve Bank of Australia, the Bank of Canada and the Bank of England. The remainder of September is also a gathering of risk events, including the Federal Reserve (FED) interest rate resolution that may reveal the QE3 mystery, the German Constitutional Court will rule on the legality of the European Stability Mechanism (ESM), the Dutch general election, and a large number of Eurozones. The state bids for the sale of national debt, etc. The next September gold price will be destined to have big moves.
However, it is worth your attention that the bulk commodity market is still in a significant weakness this year. The prices of international crude oil and bulk agricultural products lack rebound momentum. The LME metal index (especially copper) continued to fall, repeatedly hitting new lows in recent years. The break-down of international industrial metal prices shows that the market's demand for industrial metals is expected to drop sharply, which may drag down the metal properties of silver and put pressure on silver prices. Therefore, for the sake of hedging demand, gold is still your first choice in personal asset allocation this year. In your personal asset allocation, the proportion of silver should not exceed that of gold.
In addition, the rise in gold prices is also related to the net purchases of gold by central banks around the world, that is, buying is greater than selling. It is estimated that they will buy a net 15 tons of gold this year. Although the amount is not large, this is the first phenomenon in 20 years. It is reported that in the past 10 years, central banks around the world have sold an average of 442 tons of gold per year, equivalent to about 10% of global gold demand. After the outbreak of the financial crisis, the central banks of EU countries no longer dumped a large amount of gold as they did in the past, but invested in profitable sovereign debt. At the same time, the central banks of some other countries bought large amounts of gold as reserves to ensure the safety of national reserves. This change shows that the central bank has changed from a seller to a buyer, thereby exacerbating the contradiction between supply and demand in the gold market.
But the sustainability of this rebound has caused differences among market participants. Some analysts believe that due to the weak economic data of major countries in the world and the low-inflation interest rate environment, central banks of various countries may further relax their monetary policy expectations in the future, and will dominate the market in the short term, thereby benefiting gold prices.
A gold analyst from Dayang Gold believes that in the medium and long term, the fundamental factors that support the maintenance of gold prices have not changed substantially. Hot money in the market is constantly testing the upside of the gold market. Doing long on dips is still a relatively sKur precious metals co.afe way of operation.