The reason for the weak rise in the price of gold was that after the European debt crisis, there was a shortage of liquidity; in addition, after the failure of Man Financial, a futures company, the margin increased. Everyone sold gold into cash and was willing to hold US dollars instead of gold; The trend of the US dollar index is relatively good. Now the US dollar index has passed 80, from 73 to more than 80, which will also suppress the price of gold. Another point is that by the end of the year, funds have to cash out and institutions have to redeem, and the pressure will increase. Generally speaking, the previous rise has been high, the huge profits have been huge, there must be an adjustment, and the adjustment process is downward. The fund began to enter when it was $1,000, and it almost doubledPrecious metals in catalytic converters to $1,900. The fund must go out, so the overall pressure on gold prices is relatively high. Qin Weihuan, a researcher at the Beijing Gold Economic Development Research Center, said in an interview with a reporter from the Economic Times.
Of course, the supporters of gold may be right, and the price of gold may continue to rise, and the driving force behind it is the debt crisis in Europe, the huge deficit in the United States and the inflation panic. When gold hit a new high on May 12, Jim Rogers (JimRogers) said in an interview with Bloomberg Television: Because the world's paper money is depreciating, the only thing we can do is to invest money into real assets.
In less than a month, the international gold price continuously broke new highs under the influence of the alarms of the sovereign debt crises in Europe and the United States. It not only broke through the original historical record of US$1,575 per ounce in mid-July. , And soon broke the $1,600 ceiling, and continued to attack almost non-stop. The highest has exceeded $1,675 per ounce, which is not only a full $100 higher than the previous round of gold history that has been maintained for several months, but also a thousand seven Guan is almost one step away.
In the overnight market, precious metals rose significantly due to factors such as the fact that the Fed’s minutes did not mention information on interest rate hikes. Among them, London Gold opened from US$1319.28, the highest was US$1332.15, and the lowest was US$1317.40. The closing price rose by US$7.1 to US$1,26.60, an increase of 0.54%. Spot silver rose weakly. The data showed that the last trading day (9th), silver Opening at 21 US dollars, the intraday oscillating between 20.96 US dollars and 21.22 US dollars, closing at 21.07 US dollars, up 5 cents, or 0.24%.
Last Friday (18th), the market was closed for one day due to the Western Easter Holiday. The overall trading of precious metals in the Asian disk is light and volatile. The gold deferred contract on the Gold Exchange opened at 259.97 yuan, the highest was 260.10 yuan, the lowest was 258.27 yuan, and it fell 0.27 yuan throughout the day, or 0.1%; the silver deferred contract within the day was as high as 4064 yuan and the lowest was 4042 yuan, and fell 4 yuan to 4050 yuan at the close. A decrease of 0.1%.
As a small and medium-sized enterprise, it used to be troublesome for us to obtain a loan from a bank. Now we can obtain a loan from a bank as long as the goods are stored in the warehouse of the exchange. The procedures are simple and the most importPrecious metals in catalytic convertersant thing is that it does not affect the sale of goods. Loan interest can be settled on a daily basis, which greatly reduces financing costs for our company. Hu Yonghui, general manager of Yongxing Ruijing Smelting Co., Ltd., told reporters.
On the same day, the price of silver futures for December delivery fell 47.6 cents to close at 30.446 US dollars per ounce, a decrease of 1.54%. Platinum futures for October delivery fell 16.6 US dollars to close at 1503.7 US dollars per ounce, a decrease of 1.09%.
So far, US economic growth this year has been slightly slower than expected, with annual GDP growth in the first quarter being only 1.8%. Federal Reserve Chairman Ben Bernanke mentioned in his speech at the International Monetary Conference last Tuesday that the US economic recovery seems to be advancing steadily and the labor market recovery is slow. Inflation has recently started to rise but is still easing, and economic development has not yet reached its potential. Therefore, a moderately loose monetary policy is still needed. This month is the last month of the implementation of QE2 in the United States. If the economic data of the United States continues to be dismal in June, then the Fed is likely to continue to take measures to support the economy. This measure may be the United States will eventually reach an agreement to raise the debt ceiling. If so, the dollar will continue to be under pressure in the later period, and silver will benefit from it and regain its upward path.
Bernanke did not elaborate on the economic stimulus that the Fed can still use last Friday, but he said that the Fed will extend the mid-September meeting to two days to discuss the policy options that can be adopted. Many market observers view the extension of the September meeting as a sign that the Fed is about to introduce more support measures.