Since September, has gold given an opportunity like DhabaPrecious metal refinerylia said? The answer is yes, but the opportunity is fleeting. On Monday, the spot price of London gold fell to a minimum of US$1,534 at 15:10, but in just 30 minutes, the price of gold miraculously rose to US$1,588. On that day, gold fell by $28, but the decline narrowed compared to last Friday.
However, there are also analysts that the excessive panic in the gold market in the early stage has led to a serious setback in investor confidence and left the market to wait and see. It is expected that the gold price will rebound in the short term. From the perspective of ETF fund holdings, as of March 20, the gold holdings of SPDR, the world’s largest gold ETF, remained unchanged from the previous trading day, at 1,222.16 tons. However, the fund increased slightly on the previous trading day. Holding 2.71 tons, although it is still near the low point in a year and a half, there are signs of stopping the decline.
Theoretically speaking, the warming of risk appetite has both long and short effects on gold: on the one hand, the warming of investment sentiment will weaken the charm of gold’s hedging, which is negative for gold; on the other hand, it also means the increase of risk investment preference. Futures markets with high risks and returns will become active, and gold futures, which determine the price of gold, may also be sought after, which is bullish for gold. From the current market background and investor operating tendencies, negative factors are occupying a major position.
When the U.S. dollar loses its stable value standard, people and the market will look for a new pin to avoid trading chaos. There are several options, but in the context of the in-depth development of the multi-polar world, the simplest is the most feasible, and the gold standard that is softly linked to credit banknotes is the simplest. It seamlessly connects with the current financial system and makes it easier Say, let the price of gold rise in place, and it will happen. This is why gold erupted.
RJOBrien&Associates said that the results of the elections in France and Greece show that the strict fiscal austerity program in the euro area is beginning to end, and there is a possibility that Greece will leave the euro area. This may cause Greece, which is subject to the IMF and the European Central Bank, to gradually give up fiscal austerity. Affected by this, the U.S. dollar strengthened, and precious metals faced an impact.
Affected by factors such as the renewed tension in Ukraine, which stimulated market risk aversion, precious metals generally recorded a moderate rise in the previous tradPrecious metal refinerying day. London Gold opened from US$1,296.53, and then steadily rose. During European time, the increase was boosted by rumors about Ukraine in the market, and it was as high as $1,314.18. There was a slight fall in the US session. As of the close, it was reported at 1308.40 US dollars, an increase of 11.45 US dollars, an increase of 0.88%. Spot silver, driven by the rise in gold, also achieved larger gains and closed above the round mark. Data information shows that on the previous trading day, spot silver opened at an intraday low of $19.86, and then steadily rose, reaching the highest near $20.16. As of the close, it rose 0.18 US dollars to 20.03 US dollars, an increase of 0.91%.
From a technical analysis, Wu Chengjie pointed out that from the perspective of the wave shape, this adjustment is more likely to be a correction wave in an upward process, so the midline bulls can still continue to hold positions for observation. However, due to the magnitude of this adjustment, the market outlook may still go up in a volatile form, that is, there is still the possibility of a fall after a rebound. The focus will be on the extent of the fall. If you continue to gain support above 1490 US dollars/ounce and go up, it is a strong adjustment, and it is expected to test the previous head of 1560 US dollars/ounce again. Of course, if the market outlook falls below $1,450 per ounce, there is a possibility that this round of super long wave will come to an end.