Avery pointed out that as an investor, he must have forward-looking thinking. He hopes to participate in the process of the rise of the Asian middle class as soon as possible. Avery said that he is not worried about the aging problem for the time being. The Eternal precious metalscompany estimates that the peak of the demographic dividend will last until 2015, and then slowly decrease; in the medium term, investment returns in emerging markets such as India and India will be much higher than those in the United States.
The Fed's meeting on interest rates is approaching again, and Bernanke's speech will once again become the focus of the market. Here, we cannot help but recall Bernanke’s testimony in Congress on May 22, in which two sentences have caused dramatic fluctuations in global markets. At 10 am local time on Wednesday, Bernanke said: Premature tightening will endanger the recovery. This sentence pushed the dollar to fall sharply and gold rose sharply. 30 minutes later, Bernanke said again: The Fed may start to slow down quantitative easing (QE) in the next few meetings. This sentence pushed up U.S. bond yields and the U.S. dollar, and gold plummeted. What are the contradictions in Bernanke's speech?
The United States New York Mercantile Exchange (COMEX) gold futures closed significantly on Thursday (December 29), falling for the sixth consecutive trading day. Mainly because the fund settled its positions at the end of the year, earlier gold was dragged down by the euro's fall and approached the edge of a bear market. However, the timely emergence of bargain-hunting buying after the crash helped gold prices break away from the 6-month low.
The riots in Egypt are not all that investors worry about. What investors worry about is that the riots may affect major oil-producing countries in the region such as Libya and Algeria, both of which are members of OPEC. Similar protests have occurred in other countries in the region, including Tunisia and Yemen in recent weeks.
The EU summit last Friday did not achieve the expected results. Although there were some bright spots, it was still disappointing. Affected by this, the international spot gold fell sharply, fell to near the 1700 line, stabilized and rebounded, and began to consolidate at a low level. In today's Asian session, spot gold has dived again, and no news has been released so far. The lowest downward test is near the 1684 line, and it is currently stable at the 1690 line.
On Tuesday (July 30) late in New York City, the spot gold price dropped slightly to around $1,326 per ounce. The cautious departure of the U.S. dollar shorts in the Eternal precious metalsearly trading led to the overall rebound of the U.S. dollar. At one point, the price of gold fell and hit a daily low of $1,17.13 per ounce; but then the price of gold reduced its decline as data showed that house prices rose less than expected in May and consumer confidence fell in July. It is a sign that the US economy may slow down. However, the Fed's resolution and the announcement of the US GDP are imminent, limiting the fluctuation of the gold market.
On July 27, although the US Treasury Department successfully auctioned $35 billion in 5-year Treasury bonds, the highest yield of the winning bid reached 1.58%, which was higher than the 1.547% predicted by Bloomberg after a survey of the Fed’s nine major dealers. Moreover, 48.79% of the 35 billion US dollars were sold at the highest yield.
The repeated rescue plans of the Eurozone government have shown the light to many people and gradually took away the hope of the Greeks. There is a very essential difference between rescue and rescue plans. Whether or not resources are actually invested becomes the only basis for judging the rescue or not the plan. Recently, some organizations have made statistics on the risk exposure data of the euro area countries, and the results prove that Greece's risk exposure is far lower than that of Ireland, which is also the European pig country. Although Ireland is smaller than Greece, the scale of the rescue is much larger than that of Greece, which makes it easy for people to understand the difference between rescue and plan. The interest of 769 million euros on the national debt due on the 20th actually caused the Greek Prime Minister to temporarily cancel his plan to go to the United States, preparing for the stability of the people after its default. What is the difference between a country running for hundreds of millions of euros and beggars? Did Greece get a bailout or a plan?
However, the impact of central bank currency issuance on gold prices cannot be one-sidedly stated that a large number of currency issuances will increase the price of gold. In other words, central bank currency is not necessarily beneficial to gold prices. We must pay attention to where these currencies will flow after the Fed issues notes.
Wang Lixin, vice president of Jingyi Group and chairman of Jingyi Gold Industry Co., Ltd., said in an exclusive interview with a reporter from the Securities Journal that the U.S. economic situation, fiscal and monetary policy adjustments, and the trend of the U.S. dollar have a direct impact on gold price fluctuations. Determined by the important position of the US dollar in the international financial system. In the future, with the diversification of the international monetary system, the factors affecting the price of gold will come from more levels, and the analysis of the long-term trend of gold prices must first start with the macroeconomic and political environment.