Precious metals market dynamics

Precious metals market dynamics

However, some analysts believe that this round of higher gold has not driven other precious metals higher as in the past. This is mainly because the financial attributes of gold are more prominent, while platinum is more of a commodity attribute, and the price is detePrecious metals market dynamicsrmined by industrial demand. Therefore, you need to be cautious about buying. Tian Pengfei, a senior analyst at Sichuan Gold, believes that from a technical point of view, the price of gold has broken multiple important resistance levels and is still rising wildly. Now judging the short-term correction level is undoubtedly a guess. Investors who currently have no positions are advised to wait for the callback before entering, while investors who already hold multiple orders set a stop loss level. Shorting is not recommended at this stage, because gold is still in a bull market in the medium and long term, and there are now many positive factors as fundamental support.

Many investors have changed their investment strategies and put the gold price operating range to between 1690-1650 US dollars. The trend of silver is similar to that of gold. The large triangle pattern of silver's daily line level has broken the position, and it has been hovering in important price ranges. The silver market is facing directional choices. Investors need to be patient at critical moments, only from a technical perspective. The risk of using multiple orders to grab a rebound is relatively high, and it is more appropriate to continue to intervene in rallies. Although international gold prices currently often hit the psychological threshold of US$1,700. But whether it can stand above the price is still unclear. As long as the two parties in the United States do not reach a final agreement on the fiscal cliff, the cautious atmosphere in the gold market will hardly dissipate. In addition, as the end of the year is approaching, investors are more inclined to take profits than to establish new positions. Luzheng Futures Zhou Hongliang analyzed. He believes that although the market expects that Japan's easing policy will further expand, the market remains cautious until the outcome of the negotiations is confirmed.

Just as the price of gold continues to fluctuate within a narrow range, Citygroup analyst Tom Fitzpatrick recently made crazy predictions that the price of gold will rise to $3,500 per ounce within three years. However, he also said that from the current price pattern, the price of gold will continue to drop before rising.

In addition, Wang Ruilei, chief analyst of Gosell, said that summer is the adjustment season for the entire commodity, gold, and industrial products in the energy sector, so short-term opportunities in summer are stronger than those in bands. I think the balance of bulk commodities is expected to take place in the summer. After this round of balance adjustment is gradually over, the balance pattern of bulk commodities will be broken, and the relationship between product price comparisons in weak economic cycles is expected to be reorganized. Therefore, I think it is difficult for the precious metals market to generate high points in the summer, and it is more likely to be a dormant trend. Short-term arbitrage opportunities are worthy of investors' attention and grasp.

Standard & Poor's chief investment strategist Sam Stovall said in an interview with a reporter from the Securities Journal on the 25th that the price of gold will exceed $1,800 per ounce, and it is likely to reach $2,000 per ounce. Joseph Kinder, chief global investment strategist at Merrill Lynch, told the Securities News that the factors driving the rise of gold prices will not change in the foreseeable future. In addition, CNBC commentator Zach Campbell said in a live interview that it is not a problem for gold to reach US$5,000 per ounce within two years.

From the fourth quarter of 2012 to the present, the wealth effect caused by the U.S. stock market and the property market has been very eye-cPrecious metals market dynamicsatching. The recovery of personal consumption expenditure in the property market and the increase in wealth and the rise in the stock market have constituted a virtuous circle of economic recovery in the U.S. stock market. The prosperity of the real estate industry is the driving force of economic growth. Housing prices and sales have grown rapidly. Because sales are still at a historical low point and the current extremely low mortgage interest rates are superimposed, the real estate industry is booming beyond market expectations.

At present, both the United States and the Eurozone are facing a balance between epidemic prevention and control and the resumption of work and production. Although there have been improvements, the road to recovery is not smooth. In terms of epidemic prevention and control, the number of new confirmed cases of new coronary pneumonia every day in some states in the United States has declined, but the epidemic prevention and control situation remains severe. The European epidemic has counterattacked, a new round of epidemic has spread, and the epidemic prevention measures of various countries are also being upgraded. Once the epidemic breaks out again or economic data falls short of expectations, both the US dollar and the euro will face downward pressure.