Gold prices continue to fall


As the U.S. dollar rebounded from the recent one-month low and crude oil prices fell, the price of gold slipped below the level of 1,660 U.S. dollars yesterday (March 29) and fell for the third consecutive trading day. The overnight gold price rose from a two-week high. Retreat.

Credit Suisse analyst Tom Kendall said: We have seen buying in Asian markets, both on the bank side and on physical investors. At the same time, there is no large amount of selling, so there is a lack of meaningful direction and flow. He also said that the current view of the price of gold is rather neutral.

Compared with the recent period, the current market buying is small, until the next Fed issued a meaningful policy statement, the gold market will be in a test state, it is recommended to wait and see the next meeting of the Federal Reserve meeting, that is, April 24 and 25 day.

The extremely loose monetary policy in recent years has weighed on the dollar and pushed down the real interest rate, so the cost of holding gold is very low.

Our amendment to the US dollar will be skeptical of pushing the price of gold up to $1,700, especially since there is a strong correlation between gold and stocks and risk sentiment.

The intervention of various countries in the commodity market is temporary. It is necessary to solve this problem at the source, that is, to shrink the currency. However, the current employment situation in various countries is not very good. Exchange rates and trade frictions tend to devalue the local currency. This is the current problem. There are no signs of improvement. Overall, the current round of gold price adjustments is still continuing. In the second quarter, individuals are currently seeing $1,600.

UBS lowered its 2012 gold price forecast from the previous 2,050 US dollars to 1,680 U.S. dollars, reflecting in part the first quarter of this year's gold price trend.

People gradually accepted the view that the U.S. economic recovery has become more sustainable, as serious macro pressures have gradually eased and investors are seeking to invest in other assets. Gold gradually faded out of the center of the market that occupied half of last year.

The economic downturn in the United States, further credit pressure, continued official sector buying, high oil prices, and low interest rate environment all support the gold price.

The price of gold is expected to continue to grow until the end of 2013. The 2012 average price is estimated to be $1,845; the average price in 2013 is $2,175 per ounce.

Investors need to hedge gold as risk, which may cause the price of gold to rise. Although the current strength of the US dollar is unfavorable to dollar-denominated gold, it is expected that the Fed’s aggressive actions (including the possible launch of QE3 in the first half of the year) will be positive for gold prices.

At 09:34 GMT, today's gold price is reported at 1662.60 US dollars per ounce.