The short-term purpose of hedging byHouston precious metals large gold miners is to use the funds from selling spot gold to buy up 5-year gold forward trading contracts. Since the 5-year forward price jump of gold can often drive the spot price of gold stronger, miners use this to artificially increase the spot price to lock in higher mining profits and save themselves from operating losses.
On the same day, the price of silver futures for December delivery rose 12.4 cents to close at $34.109 per ounce, an increase of 0.36%. The price of platinum futures for delivery in January 2013 fell 16.8 US dollars to close at 1678.5 US dollars per ounce, a decrease of 0.99%.
This move will bring the Cyprus government 5.8 billion euros in financing, equivalent to about 33% of its gross domestic product (GDP), but this unprecedented decision has caused strong dissatisfaction among the Cypriot people, because it will be the first time bank depositors in the euro Suffer losses in the district assistance agreement.
However, investing in gold is not without risk, because the price of gold is affected by many factors. Most experts predict that the price of gold will continue to rise in the long run, and many analysts agree that gold will rise above $2,000 per ounce in the future. However, the trend of gold prices is not stable, and periodic declines are inevitable. Once investors have gone through the downward cycle of gold, investors in gold futures and gold T+D may have a risk of violent positions, and investors in paper gold and physical gold may also have the risk of temporary lock-in. Therefore, investing in gold must have sufficient risk awareness.
As far as QE policy is concerned, withdrawal is almost a certainty, it is just a matter of time. The economic recovery of the United States can be clearly seen from the economic data last month. Although the non-agricultural data in July did not perform well, the Dow still hit a new high, and the US dollar index also fluctuated upward. As the U.S. economy improves, QE exit expectations become stronger, and a strong dollar will fuel the decline in gold prices.
Of course, unlike ordinary investmeHouston precious metalsnt institutions and investors, the purpose of the central bank's purchase of gold is more to optimize the country's foreign exchange reserve structure. The countries that increase their holdings the most are also countries where gold accounts for a low share of foreign exchange reserves. For example, only 9.3% of Russia's foreign exchange reserves are gold, while the shares of the Philippines, Turkey, and Mexico are only 13.6%, 12.2% and respectively. 4.2%. Gold accounts for only 1.7% of China’s foreign exchange reserves, and my country’s gold reserves have been maintained at 1054.1 tons for a long time.
Nedoss believes that the US non-agricultural employment data is a bit disappointing, but the number of US employment is at least increasing. The market expects that non-agricultural employment in the United States will increase by at least 90,000 people, because the actual published data cannot trigger investor discussions on QE. Investors look forward to the arrival of the storm, but the development of things is indeed mild, and this is not what some investors expect.
For gold itself, in the long run, it should not be a good investment, because gold is a zero or negative interest rate product, but you can invest in companies that own gold, one can enjoy the benefits of rising gold, and the other has dividends. And dividends. As long as the economy is growing, gold will not stay too high. Citi believes that the target price of gold in the next three months is 1,750. Said Qiu Sizhen, head of research and investment analysis at Citi Retail Bank.
Adrian Day, Chairman of Adrian Day Asset Management, said: After the interest rate hike, the gold market may see a liberating rise, especially if it only rises by 25 basis points and is accompanied by a statement that it will gradually raise interest rates cautiously.