However, Jiang Shu, a gold analyst at Industrial Bank, has a different view on the trend of the dollar. The possibility of a depreciation of the US dollar relative to otherPrecious metals trading work currencies is small, and the price of gold will fluctuate downward in the future. He pointed out that the Fed’s aggressive monetary policy reflects the lagging economic stimulus measures in the Eurozone. The Eurozone will inevitably be affected by the economic crisis. Looking at the world, there is currently no currency that can replace the US dollar.
Despite the severe volatility in September, the pattern of long-term bullish international gold prices still seems unbroken. According to market analysts, before the settlement of the European debt crisis and the clear recovery of the US economy, the characteristics of gold as a safe-haven asset will continue, and its trend will remain optimistic for some time to come.
In response to my country’s increasing foreign exchange reserves, Shen Hanyao, Dean of the Wharton Institute for Economic Research, suggested that increasing gold holdings should be considered to increase the income of foreign exchange reserves and serve the development of the real economy. Shen Hanyao said at the 10th Top 100 Listed Companies Summit Forum held on the 12th that the amount of foreign exchange reserves is increasing, but the income needs to be improved. Foreign exchange reserves are foreign exchange property rights owned by a country. They are assets and wealth temporarily deposited abroad. Only when foreign exchange reserves are used can their purchasing power be truly realized. Otherwise, it would be equivalent to donating domestic products to other countries for free for a period of time. my country's foreign exchange reserves mainly purchase US Treasury bonds and US corporate bonds. Although these assets can obtain corresponding investment returns, from the actual situation, their returns need to be improved. Shen Hanyao suggested that in addition to responding to international settlement and financial market investment, foreign exchange reserves should also serve the development of the real economy. In terms of specific investment directions, more consideration can be given to gold and commodities. At present, although my country's gold reserves rank fifth in the world, compared with the United States, Germany, Italy, France and other countries, my country's gold reserves are still very small. This is not only inconsistent with our country's economic status, but also caused our country's national wealth to suffer losses. He said that the international financial crisis has just given my country the opportunity to use foreign exchange reserves to purchase important mineral resources, increase strategic reserves, make up for shortcomings in the national economy, accelerate the optimization and upgrading of industrial structure, comprehensively upgrade technological content, and increase innovation capabilities. (Zhu Yin)
In this regard, an analyst at Citibank even predicted in the report that by 2016, the price of gold is likely to rise to US$3,500 per ounce. From a medium to long-term perspective, the prospects of gold are still optimistic, especially in the context of rising debt ceilings. The bull market in gold is still supported by fundamentals.
KingsviewFinancial senior market strategist Charlie Nedoss said that technically speaking, the price of gold fell. Although it once rose to more than $1,600 per ounce, the rise was weak. In addition, the strengthening of the US dollar also put pressure on gold prices.
In addPrecious metals trading workition, compared with the North American and European markets, gold ETFs, one of the important gold investment needs, are still in the early stage of development. According to the study of the World Gold Council, the speculative mentality of investors is more closely related to gold ETFs. About 54% of investors define their main purpose of investing in gold ETFs as speculation or hope to obtain short-term returns. However, it is worth noting that although the total amount of gold ETFs held by investors in the first half of this year has fallen again, the acceptance of digital innovation of financial products by gold ETF investors is very high, which is important for the transformation and upgrading of the gold industry and the deepening of finance. Reform has a positive role in promoting.
ETF Securities said that so far this year, euro gold has risen by 11.4%, far exceeding the 6.8% increase of dollar gold, becoming the king of gold and other currencies. At the same time, in the context of the Eurozone still facing the threat of deflation, the Euro is highly likely to continue to fall.
From December 2018 to the end of September 2019, the central bank increased its gold reserves for 10 consecutive months, increasing its holdings of gold by 3.4 million ounces (about 105.75 tons). As one of the major asset allocations, gold has multiple attributes of commodities, currency and finance due to its unique nature, and can play a role as a hedging and financial stabilizer. At present, uncertainties in the world economy are increasing. In the face of trade frictions and geopolitical events one after another, the central bank continues to increase gold holdings. This is mainly a strategic choice to optimize my country's international reserves, ensure financial security, and support the internationalization of the RMB.
Since the end of January, international and domestic gold futures have fluctuated higher, driven by market risk aversion and inflation concerns. The main April contract of New York gold hit a record high of $1444.5 on March 7, and the main Shanghai gold contract 1106 also rebounded again. Above 300 yuan. In the short term, it will take time for the political turmoil in the Middle East and North Africa to calm down, and inflationary concerns caused by the rise in the prices of crude oil and other commodities will continue. With this support, Shanghai gold will easily rise but never fall.