GFM Asset Management Fund Manager Denison believes that in the past ten years, gold prices have benefited from the continuous printing of money by global central banks, the growth of physical demand from India and India, and Wells Fargo Precious Metals Fundthe investment demand for gold ETFs. However, even so, from the historical point of view of the past 40 years, the performance of gold prices is still lower than the performance of stocks, real estate, and even bonds in the same period. This trend may continue in the future.
Xinhuanet, Chicago, September 8th (Reporter Zhu Zhu) Supported by weaker-than-expected US job market data, coupled with a large number of bargain-hunting buying orders, international gold prices rebounded strongly on the 8th. On the same day, the most actively traded December contract on the gold futures market of the New York Mercantile Exchange closed at $1,857.5 per ounce, an increase of $39.9 or 2.2% from the previous trading day.
Paulson believes that the continued fermentation of the European debt crisis and the prospect of quantitative easing in the United States will push up the price of gold while weakening the dollar. PIMCO said that inflation has begun to rise in the United States and will ferment in about a year, and the price of gold will rise as a result. Soros directly doubled the SPDR Gold Trust's holdings.
Brown Brothers Harriman Bank's global head of foreign exchange strategy, Mark Chandler, said that the minutes of the Fed meeting were the direct cause of the increase in the dollar index. Ruskin, head of Deutsche Bank's foreign exchange strategy department, said that the latest minutes of the meeting will be regarded as the beginning of the Fed's end of the highly accommodative monetary policy, which will lead to the continued strength of the dollar in the second half of this year.
The continuous accumulation of wealth has also given birth to the explosive growth of the middle class, and Indians have more spare money to purchase gold than ever before. According to data from India's authoritative economic think tank-the Center for Economic Monitoring and Control of India (CMIE), the country's gold purchases will reach 1,200 tons in the next 10 years, and as many as 64 million middle class will play the main force in consumption. In general, India is also in a critical period of social wealth and national economic growth, and more disposable income means more gold consumption.
CFTC data also shows that the US dollar is in sharp contrast to gold. In the week ending May 14, the net long US dollar positions held by institutional investors were US$30.4 billion. The net long position in the previous wWells Fargo Precious Metals Fundeek was US$24.6 billion. The nearly 25% increase was the largest weekly increase in a year. The data shows that the market's sentiment to be bullish on the US dollar has further increased.
At 1900GMT, spot gold XAU= was quoted at US$1,733.73 per ounce. The US February gold futures GCv1 rose by US$9.60 to US$1,735.50. As the US market is on President’s Day holiday, the trading volume on the New York Mercantile Exchange (COMEX) is only 42,000, which is about a weekday A quarter of the normal amount.
The inflation rate has not yet seen a rising trend, which will not be conducive to the strengthening of gold prices. Investors would rather invest their funds in higher-risk assets to obtain the benefits of economic recovery than hold safe-haven gold positions. If this situation cannot be improved, gold will remain weak in the medium to long term. Bao Huhe, an expert in the bank's treasury business department, said.