Gold prices hit a seven-year high

Gold prices hit a seven-year high

The international spot gold price continued to rise after standing at 1,600 US dollars/ounce , hitting a high of 1612.9 US dollars/ounce in the past seven years. Gold prices continue to rise in addition to being driven by the risk aversion sentiment of the new coronary pneumonia epidemic on the world cartier ballon bleu replica economic outlook.The market expects that the Fed's possible to cut interest rate this year will be a negative factor for the US dollar. It is also an important reason to promote it .

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Affected by the new coronary pneumonia epidemic worldwide, investors are worried that the global economy is declining, gold hedging demand is increasing, and gold prices are rising. From a technical perspective, the indicator system shows a long position, and the price of gold has the potential to rise further. It is expected that after a short-term rapid rise, it will be adjusted briefly,and then continue to make a strong attack, with a target of 1640 US dollars per ounce.

The Gold chief analyst of Shandong believes that the fundamental reason for the gold price to hit a new high since 2013 is still fundamentals, because the recovery momentum of the global economy, the expectation of currency easing is still high. The direct reason is that the global new coronary pneumonia epidemic has slowed down the recovery of the global economy and boosted the gold price hedging. However, with the new crown pneumonia epidemic situation under control, risk aversion will decline, and the room for further rise in gold prices in the short term should be relatively  limited.

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Citigroup said it expects the price of gold to reach US$1,700/oz in the next 6 to 12 months, and US$2,000/oz in the next 12 to 24 months. As a traditional safe-haven asset, gold provides investors with a “safe haven” when the global economic downside risks increase and geopolitical tensions arise. In recent years, central banks, including China and Russia, have been increasing their holdings of gold reserves to hedge against dollar risks in order to enhance financial stability.


Post time: Jun-30-2020

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