Historically, gold can protect investors from extreme inflation. In years where the inflation rate is higher than 3%, the price of gold rises by an average of 15%. It is also worth noting that the Oxford InstiPrecious metal analysis consultingtute for Economic Research has shown that gold should perform well in a period of deflation. These periods are characterized by low interest rates and high financial pressures, both of which tend to push up gold demand.
As the Federal Reserve stated after its policy meeting on Wednesday that it would purchase a large amount of long-term Treasury bonds and mortgage-backed securities, which triggered a sharp drop in the U.S. dollar and rekindled investors’ concerns about inflation, thus increasing the risk-averse appeal of gold. Spot gold today is experiencing After falling for two consecutive trading days, it rebounded sharply, and broke through the four moving averages on the 10th, 5th, 30th and 20th consecutively.
The violent fluctuation of silver has also attracted the attention of exchanges. On April 26, the gold exchange adjusted the trading margin of silver T+D contract from 12% to 15%, and changed the price limit of silver T+D contract from the original 7 % Is adjusted to 8%. Many banks have also raised the trading margin for silver T+D contracts.
Last Friday, it was a Black Friday for gold investors. On the same day, the spot gold on the international market opened at US$1,740.43 per ounce. It plunged to US$1,629.13 per ounce during the session and closed at US$1656.8 per ounce. The most actively traded December gold futures contract on the New York Mercantile Exchange suddenly plummeted by US$101.9 per ounce to close at US$1639.8 per ounce, setting the lowest closing price since August 1 this year. After entering this week, the price of gold is still riding a roller coaster. This Monday, the price of gold continued to plummet during the day, but began to soar at night.
The price of gold remains high, so many gold diggers who love beauty can only hope for gold to quench their thirst. Yesterday, the reporter learned from major merchants and pawn shops in Wuhan that recently some savvy buyers have found an alternative discount method—exchanging gold bars for jewelry, which can reduce the cost of buying gold by nearly 10%.
In the afternoon session of the Asian market today, due to the break of the key support of US$1707, which triggered a large number of technical selling, the price of gold fell below US$1700 again after a lapse of 1 month, with a minimum of US$1,695.05 per ounce. Afterwards, gold held sPrecious metal analysis consultingteady and slowly moved upward. As of 20:53 Beijing time, the price of gold was reported at $1703.24. Traders believe that the current low prices are likely to attract the attention of some central banks and start buying gold. And this price will stimulate purchase demand.
Darin Newson, an analyst at DTNTelvent, pointed out that in recent trading days, the price of gold has fallen, and some investors have entered on dips, hoping to put their funds in a safe haven before the weekend. The demand for physical gold has also provided strong support for gold prices. After the recent decline in gold prices, buyers from the Asian jewelry industry have re-entered the market.