The weekend of November 6 was not a quiet weekend for commodity investors, and many investors woke up in the morning to find that the international gold price rose sharply, somewhat unexpectedly.
On November 5, local time, the yield of US Treasury bonds fell, and the price of precious metals, especially gold, rose sharply. Gold prices strongly broke through the important psychological threshold of $1800, surging 1.48% throughout the day to close at $1820. Market analysis believes that if the gold price breaks through the strong pressure level of $1830, it may cause more investors to participate, which will trigger more gains.
On the news side, the data released by the United States showed that the number of US employees increased by 531,000 in October, and the expected number of 425,000 people was much higher than the market expectation. The dollar rose with it, but U.S. bonds fell sharply, with the 10-year Yield falling to 1.45 percent, the lowest level in nearly a month. Spot gold continued to rally, peaking as high as $1815.39.
According to data, within one minute of 20:30 Beijing time, comex's most active gold futures contract was traded 2148 lots, with a total value of about 384 million US dollars; 2455 lots were traded in one minute at 21:27, with a total value of about 442 million US dollars, and the trend of accelerated inflow of funds was obvious.
As we all know, due to the impact of the Fed's balance sheet reduction expectations, the trend of gold prices has been relatively sluggish this year, but on the other hand, the continuous inflation has cast a shadow on the prospects for the recovery of the world economy, and the price of precious metals denominated in US dollars can be said to be the weather vane that most intuitively reflects inflation expectations.
Obviously can not rule out this aspect of the reason, the domestic side, the beginning of the year of various industrial products prices rose in turn, since October, food prices, especially vegetable prices rose rapidly, refined oil prices continued to rise, resulting in increased logistics costs in various industries, it can be said that the country is also facing severe inflationary pressure.
Since the outbreak of the epidemic, many countries have implemented monetary easing policies in order to stimulate the economy, in which the Federal Reserve has released water sharply, resulting in a surge in the price of various commodities denominated in US dollars, and the US government is still facing a serious debt problem, which has worried the market, can the US dollar really return to strength? After all, constantly raising the debt ceiling to avoid debt defaults, and the continuous release of money, has been the practice of the United States for many years.
Looking at the world capital market, the stock market has achieved good gains during the epidemic, but it is clear that the risk is rising, and the value of gold with strong hedging attributes is highlighted at this time, so the sharp rise in gold prices in early November may be just the beginning...