Understanding the precious metal market and coinage

Understanding the precious metal market and coinage

On November 25, Xi Jianhua, the father of paper gold and executive vice president of the Gold Investment Research IUnderstanding the precious metal market and coinagenstitute, said at the first gold investment summit forum in Shandong Province: It does not make sense to argue about whether the price of gold is too high. Whether there is a bubble in the price of gold depends on the promotion of gold prices. Whether the factors are reasonable.

The move occurred after the sharp fluctuations in the price of gold and silver futures last Friday. At that time, gold futures plunged by 5.9%, the largest one-day drop in five years, while silver futures plunged by 18%, the largest since 1984. One-day decline. Last week's US COMEX gold futures investment data showed that investor holdings fell to the lowest level in more than two years, which was also reflected in the decline in the number of US COMEX gold futures open positions.

From the silver 4-hour chart, silver once again challenged the strong resistance near 6600 yesterday but failed. The current formation of silver has the same bottoming pattern, and the left and right shoulders are close to each other. If the strong pressure near 6600 is broken in the near future, the market outlook will open up space to 6800-7000 First-line operation.

Standard Bank released a precious metals daily report on the 25th, saying that precious metals continue to rise due to increased European debt concerns that have stimulated investors' preference for safe-haven assets. In addition, on the 24th, the Richmond Federal Reserve Manufacturing Index fell by 6% on the 24th due to weak shipments and new orders. Previously, it was expected to rise by 9%, which once again raised questions about the strength of the US economic recovery. Other US manufacturing economic indicators have also disappointed in the past few weeks, with industrial and manufacturing data showing slower growth. These factors have weakened investors' risk appetite and sent a bullish signal to precious metals.

The price of silver futures for delivery in May 2013 fell 9.5 cents to close at $28.853 per ounce, a decrease of 0.33%. The price of platinum futures for delivery in April 2013 fell 2.7 US dollars to close at 1601.2 US dollars per ounce, a decrease of 0.17%.

The U.S. dollar index has recently shown a downward trend in shocks. The recent adoption of the European Union Recovery Fund has boosted market confidence in European integration and the economic recovery of the eurUnderstanding the precious metal market and coinageo zone to a certain extent, and has provided support for the strengthening of the euro. At the same time, the US economic recovery is faltering, and the economy is basically optimistic about the support of the dollar. The Fed's continued low interest rates and dovish attitude have also exerted downward pressure on the US dollar.

We all know that gold has both commodity and currency attributes, and these two attributes correspond exactly to the consumer demand and investment demand of gold. From the perspective of the depth and breadth of the industrial chain, gold is far inferior to other commodities. The depth of the gold industry chain is three levels, mining, processing, and sales; the breadth is two levels, one is processing into jewelry or other consumer goods, and the other is processing into gold bars. The application scenarios of bulk commodities such as petroleum and iron ore are very wide, and the wide range of application scenarios determines their diverse processing methods.

Since July, the euro has appreciated by about 5% against the U.S. dollar, and the U.S. dollar index has fallen by more than 4%. Zhao Xueqing, a researcher at the Banking Research Institute, said in an interview with a reporter from the Financial Times that the euro has continued to appreciate against the US dollar. There are active actions by the euro, but more passive results of the weakening of the US dollar. The spread of the epidemic in the United States has accelerated again, and the economic recovery has slowed significantly. Although the US economy recovered in the third quarter, its strength slowed down month by month. High-frequency indicators such as employment and consumption tended to decline after explosive growth under the low base effect. Business bankruptcies surged, fiscal deficits continued to expand, and the US economy was strong. The possibility of a type rebound has decreased, suppressing the trend of the US dollar index.