Affected by increased consumer confidence in the United States, the dollar’s rise, and investor gains, the spot silver International Precious Metals Reviewprice fell to $22.27 per ounce to close on May 31, a decrease of $2.07 or 8.5 from the closing of $24.34 per ounce on April 30. %. This is also since May 2010, the spot silver price has fallen every May for 4 consecutive years.
Judging from the situation during this holiday period, the gold exchange has adjusted the margin ratio of Ag(T+D) contracts during the May 1st holiday. From the time of day-end liquidation on April 28, 2011 (Thursday), Ag(T +D) The contract margin ratio is adjusted to 16%, and the price limit remains unchanged at 8%.
However, there are still some negative sentiments in the financial market to provide support for gold. The rating agency Fitch said on Wednesday that if the US debt ceiling fails to be raised by August 2 or other deadlines set by the Treasury Department, the US sovereign debt rating will be placed on the negative watch list. At that time, the ratings of US states and cities will be affected.
In early June, due to the dismal performance of non-agricultural employment data in the United States, safe-haven funds poured into the gold and silver market again, kicking off the prelude to a rebound in precious metal prices. Major events such as the Greek election and the G20 summit made investors reluctant to bet prematurely. The trading volume is gradually thinning, and the price consolidation range of gold and silver has further narrowed.
From a technical point of view, the price of gold has huge resistance at the $1610 line. If it can break through, the next resistance will be at the line of 1630. However, from a disk perspective, the short strength has increased, and it may drop to the $1550~1580 line for support. Investors are advised to wait and see if they have insufficient positions in the early period, and those who have short positions in the early period can pay attention to the profitability opportunities.
However, a Goldman Sachs analyst said that because the US economy will continue to maintain weak growth in the future, it will stimulate the Fed to introduce further easing policies, thereby supporting the gold price to return to Goldman's six-month target price of $1840. Barclays Capital also believes that low interest rates and long-term inflationaInternational Precious Metals Reviewry pressures will support the gold market.
Barclays Research (Barclays Research) stated in a research report that before the Federal Reserve (FED)’s September interest rate meeting, the physical gold market and gold exchange product holdings continued to provide support for gold prices, and investor inflows continued to be bullish for gold. As of last week, gold ETF holdings have risen by 16 metric tons, reaching a record high of 2,454 metric tons.