At the end of this year, the price of gold will be 10% higher than the current level; the price of gold may recover. Experts believe that by the end of this year, the price of gold may return to $ 1,200 to $ 1,225 per ounce. This year, gold (1117.30, -1.10, -0.10%) has been trying to restore its appeal, but it has fallen by 6 percentage points since January, as investors continue to evade this precious metal and prefer high-yield assets such as stocks. But after the darkness may be the dawn. 1. The possibility of the Fed raising interest rates has already been reflected in the price of gold. HSBC said that as the Fed's policy changes have been expected by the financial market as early as 2013, the fall in gold prices triggered by interest rate hikes has already taken place. Therefore, the reaction of gold to interest rate hikes, when it appears, may not be as negative as the market is worried. 2. The Fed’s actual rate hike may cause the price of gold to rise. Historical experience shows that after the Fed raises interest rates, the dollar exchange rate tends to weaken, which is good for gold that is opposite to the dollar. According to analysts, one of the reasons for this negative correlation is that the weaker dollar has made gold cheaper for holders of other currencies, thus increasing its appeal. Looking at the Fed's first four interest rate hikes over the past 30 years, it will be found that the US dollar fell after 100 days after the Fed raised its interest rate for the first time. HSBC said that this model has an important impact on gold. History shows that after the first rate hike, gold prices usually rise, although sometimes lagging. 3, the short room to cover the room for rebound Gold short positions are at historically high levels, while long positions, although high, are not particularly prominent by historical standards. HSBC said that if the investment climate is reversed, this will cause the market to face a sharp short-covering rebound. On July 7, the total short position on the New York Mercantile Exchange (Comex) hit its peak in history and remained near that position, while the total long position since December 2009 was at its highest level. 4, low prices will ultimately stimulate demand Although emerging market consumers have so far failed to increase purchases due to falling gold prices, HSBC said that low prices will eventually stimulate demand. “In important gold-consuming countries such as China, India, Indonesia and Vietnam, and other emerging markets, consumers have less choice of tools to counter price increases or lower or even negative real interest rates, protect savings and household wealth. In India and China, the per capita annual consumption of gold is relatively low at 1 gram. HSBC pointed out that as the income of these countries increases, this will give a huge room for growth in the increase in gold consumption. 5, the central bank [microblogging] buying will continue to support the gold market The higher gold reserves of the People's Bank of China have long benefited the market. Recently, the People's Bank of China announced the gold stocks of gold reserves as of the end of June - 1,658 tons, an increase of 57% compared with the gold reserves revealed in 2009. HSBC said that the People's Bank of China is an important central bank with significant influence. The fact that the central bank is hoarding gold may cause other emerging market central banks to consider buying gold bars. Moreover, there are still many central banks holding gold reserves that have only a very low level of their foreign exchange holdings, so these central banks also have room to increase gold reserves. Women's thick bottom sandals and slippers, high-end quality, fashionable design, comfortable experience, wearing slippers in public is a fashion (especially for women). These women are "Slipper women". Because many so-called "slippers" of girls are very beautiful and fashionable.Many styles and colors Women Slipper,Ladies Slippers,Women House Slippers,Women Flip Flop Slippers Jieyang City Shuangcong Plastic Products Co.,Ltd , https://www.jyshuangcong.com
October 05, 2021