Stop buying U.S. Treasury bonds must be due to changes in central banks' motives for purchasing TreasurUnderstanding the precious metals markety bonds, such as a sudden rise in inflation concerns or changes in monetary strategies, which will be accompanied by market collapse. JanLoeys and BruceKasman said.
From the perspective of gold technology, the price of gold continues to rise after the formation of the triangle on the daily line. It is currently located near the 50% retracement level of 1577.05 to 1467.9 US dollars. It is expected that there will be competition between the long and short sides. Looking at the situation in New York, the bulls have obvious advantages.
The reason why swap traders of China maintain a net short position of more than 5 million ounces of gold is that so much gold is taken out of the vault for sale, which has aggravated the sentiment of the financial market to bearish gold prices. As the price of gold plummeted by about US$200 per ounce, the net short position of 5 million ounces of gold has created a floating profit of about US$1 billion.
Recently, the Eurozone debt crisis has shown signs of deterioration. At the same time, the authorities have shown the urgency to take action to curb the spread of the Eurozone debt crisis. As the debt crisis situation is still unclear, gold continues to consolidate in the short-term. US Moody's Investment Services (Moody's) on Wednesday (September 14) downgraded the credit ratings of Credit Agricole and Societe Generale, and continued to place BNP Paribas on the re-evaluation list of possible downgrades. At the same time, European leaders stepped up their efforts to curb the spread of the debt crisis in the euro zone. After German Chancellor Angela Merkel, Greek Chancellor George Papandreou and French President Nicolas Sarkozy held a tripartite conference call, the German government spokesperson said that the German and French leaders called on Greece to strictly and effectively Implement all reform initiatives. A Greek official said that Greece expects policymakers to report that the country will achieve its goals as planned and receive the bailout needed to avoid debt default. At the same time, the Italian Prime Minister won a vote of confidence in the austerity plan. Gold prices fell on Wednesday as urgent efforts to resolve the European debt crisis pushed investors back to riskier markets. However, the situation in the Eurozone remains worrying. If Greece defaults on debt, it will have far-reaching consequences and may trigger another banking crisis. Surrounded by many uncertainties and worries, gold is expected to continue to be sought after, and low points will continue to be supported. Citigroup (Citigroup Inc.) said that if the sovereign debt crisis escalates, then gold will rise to a maximum of US$2,500 per ounce next year. Citigroup pointed out that in the next 12 months, gold may temporarily soar to 2000-2500 US dollars / ounce, and the long-term average price will remain at 1200 US dollars / ounce. MKSFinance pointed out that gold is trading in the range of $1800-1865. Considering the large scale of long positions in the market, gold is expected to undergo a deeper correction. If the support at $1792 is tested, it will pull back to the 50-day moving average of $1722.
MKSFinance trading manager Afshin Nabavi said: The price of precious metals is closely related to the direction of the US dollar. If the US dollar cannot rise, the inflow of safe-haven funds will continue to push up the price of precious metals. Investors will try to predict the trend of gold based on economic data. Taking into account the current US economic situation and geopolitical tensions, gold will rise to $1,300 per ounce.
SEBCommodityResearch said on Tuesday that a series of factors are good for the gold market, but it lowered the price of gold in the fourth quarter by US$50 to US$1,750 per ounce because the Fed’s third round of quantitative easing policy had less of an impact on gold than expectedUnderstanding the precious metals market.
In the early morning of March 26, Beijing time, Iraq purchased 36 tons of gold this month, worth about US$1.56 billion, the highest level of the value of gold purchased by a country in three years. The Iraqi Central Bank issued an e-mail statement stating that the bank’s gold purchases were intended to help stabilize the exchange rate of the Iraqi dinar against other currencies. According to data from the IMF website, as of August last year, the country held approximately 29.8 tons of gold. Mexico purchased 78.5 tons of gold in March 2011, while Iraq’s purchases this month hit the highest level since then. According to data from the London-based World Gold Council (WGC), Iraq purchased about 544 tons of gold in mid-2012, the highest purchase in 50 years, but last year it decreased to 369 tons. The association said in February that countries around the world will continue to buy hundreds of tons of gold. Last year, the price of gold hit its highest decline since 1981, due to the decline in investor demand for buying gold as a store of value, but since December last year, the price of gold has rebounded by 9.1%. Mark O'Byrne, director of the brokerage GoldCore Dublin, pointed out that gold is attractive to major central banks around the world because the central bank sees it as an important asset diversification tool and a safe haven asset in foreign exchange reserves. . The spot price of gold on the London market was last reported at US$1314.77 per ounce. Last year, the price of gold fell by 28%. In September 2011, it hit a record high of US$1921.15. In the transactions so far this month, the average price of gold is $1344.71.