However, this consistency is being weakened recently. As the global economic recovery slows, the prices of risky assets have begun to pull back. The Dow has fallen for six consecutive days, and the LME copper price has broken down; market volatility is also increasing. The Chicago Board Options Exchange Volatility Index (VIX) 8 reflects the degree of market risk. The sky rose and set a record. Signs indicate that funds are beginning to enter the gold market tAsian precious metals marketo seek hedging.
After all, the price of gold has risen too fast and too sharply. On the one hand, it will increase the cost of capital for central banks to increase their gold reserves, making them the last buyer. On the other hand, European and American central banks are not happy to see gold rising too fast to increase the dollar and the dollar. The possibility of a substantial depreciation of the euro may be higher than the rate of appreciation of the central bank’s own gold reserves. The head of the precious metals trading department of the aforementioned investment bank pointed out that CME's sudden increase in the trading margin of gold futures products has indicated that an invisible gold price manipulation hand is waving.
Yesterday, domestic Shanghai gold contracts continued to rise across the board. Among them, the main 1112 contract gapped slightly in early trading, reported 313.50 yuan per gram, and finally closed at 314.64 yuan per gram, an increase of 0.96%. In terms of external disks, gold futures prices on the New York Mercantile Exchange rose for the third consecutive trading day on the 10th. On that day, the June contract, the most actively traded in the market, rose $13.7 an ounce to close at $1516.9, an increase of 0.9%.
VisionFinancialMarkets metal trading director DaveMeger said that the market is very concerned about the probability of QE3 implementation. The Fed's wording at least means that the prospect of continued easing has become bleak, leading to a knee-jerk reaction in gold.
Robert Lutts, chief investment officer of CabotMoneyManagement, said that the outcome of the US debt negotiations is one of the focus of the market. In addition to the eurozone debt issues, many investors are also trying to understand the US debt burden. In such an environment, it is not particularly exaggerated that the price of gold will rise to US$2,000 in the next 6 to 9 months.
WGC Investment Director Marcus Grubb pointed out in the annual report in FebAsian precious metals marketruary of this year that although they are facing the challenge of uncertain domestic economic growth prospects, India and its enthusiasm for gold consumption and investment both blew out in the fourth quarter of 2012. Gold investment demand rose 24% from the previous quarter, but gold jewellery consumption demand did not rise significantly, stabilizing at 137 tons. In the third quarter of last year, India and the gold consumption demand were 223.1 tons and 185.1 tons, the gap narrowed to 38 tons.