Since ancient times, gold has been recognized as the most collectible circulation and has been called "international hard currency". It is not only as an ornament, it is itself a commodity with high value, and it will not lose the value of its precious metal at any time.
In everyone's eyes, the currency will depreciate, which is commonly referred to as "money is not worth money", but gold will not, in order to avoid risks, most people choose to hoard gold to preserve their own value or even increase in value. Therefore, there is also the saying of "buying gold in a chaotic world".
Nowadays, with the improvement of living standards, after the basic life is guaranteed, it is also seeking more benefits, so as a gold investment that does not require much professionalism, it has become the choice of most people.
If the "chaotic" gold of the previous war era was especially loved by everyone, it was used as a hard currency, from the high-ranking officials and nobles down to the common people, at that time, as much gold as possible, making gold become particularly hot.
So now, in addition to the "financial crisis" events in the early years, before the advent of the epidemic, many people began to invest heavily in the gold field is also a reproduction of the "chaotic gold" saying. This is true even for the "Big Mother of China", who was angry with the collapse of gold prices in 13 years.
Since the epidemic swept the world, the economies of various countries have been affected, and the world economy has been seriously impacted. The United States, in particular, began to print money like crazy, triggering global inflation. The decline in the purchasing power of the US dollar, gold began to return to everyone, in the past year the price of gold soared, so everyone began to buy a lot of gold, many people made a lot of money.
But in fact, the so-called "chaotic gold" is just a long time gold prices will rise with inflation, so people believe that "gold can hedge", everyone does not trust paper money, think that the ups and downs are too big, and the price of gold can preserve value.
Whether it is the financial crisis in 2008 or the current epidemic, the impact on the economy is too large, people are afraid of the depreciation of the cash they hold, so at this time, in order to protect themselves, we have to consider replacing cash with more value-preserving gold. And in the storm of 2008, gold allowed its investors to survive smoothly, which also raised the choice of gold for everyone.
Since the outbreak of the epidemic swept the world in December 2019, it has not yet passed, and the economies of various countries around the world have been significantly affected, and the global economy has declined rapidly. In order to stimulate the economy, the United States began to issue currency on a large scale, and in order to return to the peak of the economy, it completely ignored other countries in the world, but instead wanted to transfer the crisis to other countries through the big release of dollars. Also because of the special status of the United States, this move has caused global inflation.
Since gold is priced by the US dollar, the trend of the US dollar is the vane of gold prices, and inflation cannot avoid someone taking the opportunity to speculate in gold to obtain profits. So this inflation caused the price of gold to start soaring, and even hit a 7-year high last year, climbing more than $2,000 / ounce at one point, which made many investors make a lot of money.
However, the good times did not last long, the US non-farm data increased significantly, and the US Treasury yield rose, which meant that the US dollar returned, so international gold fell sharply. Gold prices have been falling since January 6 of this year, and continue to fall to $1670/oz.
Although there was a brief rise three months later, which did benefit some people, after August, the price fell below $1700 / ounce, and the direction has not been satisfactory. This also shows that gold's traditional hedging function does not seem to work this year.
Both investors and ordinary people hope that their money can be preserved, although the price of gold has fallen all the way, but it does not affect investors' various views, a temporary plunge can not scare them. Judging from the trend of gold prices in recent years, some people feel that the sharp decline in gold prices is a good opportunity to buy, choose to "bottom out" and wait for the next surge, it is because many people have begun to buy gold in a big way, and pin their hopes on it to rebound.
The recurrence of the epidemic has led to the economy of some countries that may have just recovered and have to be forced to stop again. So under such an influence, will the price of gold in the second half of the year be as they wish? There's no way to know that.
From last year to this year, everyone intuitively saw that the gold price soared and plummeted, and the fluctuations were very large and unstable, which made investors' hearts also fluctuate. Bold risk-takers keep an eye on the market and may have started to buy, and some less decisive ones can only continue to look around, and even begin to consider whether the gold market can still work. But everyone is looking forward to the trend of gold prices in the second half of the year, so that they can be profitable in the gold market.
Industry insiders pointed out that if the economic data is down, gold is better, and if the economy is good, gold will generally be on the weaker side. The decline in gold prices was mainly due to the improvement in the US employment situation, and the latest US non-farm payrolls data is very strong, which strengthens the market's expectations for the Fed to reduce quantitative easing. At present, all parties are also optimistic about the US economy, which has led to a state of continuous decline in gold.
However, at this lowest point, whether it is suitable for everyone to buy at the bottom is still debatable, due to the impact of the US non-farm data, the downward trend of gold prices has been opened, and now the US economy is in momentum, and gold prices are affected by Fed policy. Although the impact of the epidemic continues, there may be a little possibility, but in the end the situation is improving.
For ordinary people, the increase in social risk value will promote the appreciation of gold, which was confirmed by the inflation caused by the United States last year. In the medium and long term, investing in gold is still the first choice as an inflation hedge, but taking advantage of the lows to read the bottom, it really has to be carefully considered.
As a recognized hard currency, gold has a value preservation function, but its essence is still an investment product, just like stocks and funds. Then invest heavily in it, you must consider the risk problem, do not blindly buy back, to maintain a rational analysis, do not only pay attention to profits, there is speculation, you need to think twice.
In the short term, the strength of the US dollar is indeed not conducive to the current market for gold. However, gold is a medium- and long-term investment product, do not buy and sell too quickly, but analyze long-term investment. Learn the lesson and stop being a "big Chinese mother" who is covered.