The gold and silver market has indeed diverged. Precious metals analyst Gong Shanqiang said that on the one hand, the previous sharp drop in silver hurt the confidence of many investors, so the market rebound in the first two weeks was very weak; on the other hand, the recent European debt crisis has caused the market to diverge in its views on safe-haven. Some people believe that the Greek debt restructuring will help ease the spread of the European debt crMagnesium precious metalisis, so it is temporarily selling silver for cash. Those who hold the opposite view will continue to increase their holdings of gold for risk aversion, especially in the volatile market in May, when the performance of gold is still stable.
In addition, due to economic recovery, double-digit inflation and stable currency performance, Turkey's gold demand in the first half of this year has grown rapidly. At the same time, the central bank of Turkey increased its gold reserves this year, and this was the first time the central bank of the country increased its holdings since the 1980s.
However, most analysts believe that gold prices will not rise like last year. The news from the South Africa International Mining Conference held at the beginning of this month indicated that the upward momentum of gold prices has slowed down and is likely to reach the apex of this round. This is mainly because the US economy is sluggish, unemployment is increasing, and the real estate market is declining. Investors may turn to other precious metals or commodities. However, since the factors driving the price of gold have not changed fundamentally, the price of gold may be hovering at a high level in the future.
On the last trading day (22nd), due to poor US real estate data and weakened interest rate hike expectations, gold rebounded slightly after bottoming out. Data information shows that London Gold opened from US$1215.12, the highest break through US$1220, reached US$1220.41, and the lowest fell to US$1208.03. The close fell slightly by 0.77 US dollars to 1214.60 US dollars, a decrease of 0.06%. The trend of spot silver is positively correlated with gold. It fell to US$17.33 during the intraday session, and was then driven by the rebound of gold to quickly regain lost ground. As of the close, at 17.74 US dollars, down 7 cents, or 0.39%.
Over the past 40 years, the price of gold has risen from US$42 per ounce to US$1600 per ounce. We not only understand the reasons why gold has soared over the past few decades, but also understand the evolution of currency history and the important role that gold plays. However, the international economic events that have occurred in the last three years seem to have interrupted the historical evolution of currency, which cannot be compensated by paper money, gold, or more paper money.
The New York Mercantile Exchange (COMEX) gold futures closed slightly on Thursday (October 13), following the downward pace of risky assets. This was mainly due to the disappointment of the market due to the trade data, and the US stock market weakened due to the worries of the banking industry, which suppressed the buying sentiment of gold acrMagnesium precious metaloss the board.