Return of the king! Nine years later, gold stands at $1900 again

category:Finance
 Return of the king! Nine years later, gold stands at $1900 again


There are also large-scale mergers and acquisitions in the gold production industry. According to the Bank of America Merrill Lynch report, there were 12 mergers and acquisitions in the global gold production industry in the second quarter of this year, far above the average level. This quarter is the largest merger in the gold mining industry since the fourth quarter of 2012. To be specific, most mergers and acquisitions take place in medium-sized enterprises.

According to the report, some enterprises have nearly run out of gold and need to buy new ones to make up for it. After several years of downturn, the gold mining industry has ushered in large-scale investment due to the decline in mineral resources and production pressure.

Societe Generale Securities also said that the current situation of gold is very similar to that in February to August 2009. Gold is brewing to break through and is expected to hit the high before 2011. At present, gold has ended the extremely volatile trend since February and is regaining its upward trend. The bottoming up of us CPI in the third quarter was an important factor driving up gold prices. In the short term, we should pay close attention to whether the CPI of the United States shows signs of bottoming out in June. In the second quarter of 2020, the two major factors that held down the trend of gold, namely, the weak demand in emerging markets and the lack of willingness of hedge funds to long gold, are turning into positive factors. In the next three to six months, gold is expected to reach a high of US $1921 / oz in 2011 and even challenge a record high of US $2000 / oz.

China Merchants Bank also believes that the trend bull market of gold will continue, which may soon challenge the historical high and maintain the Gold Multi allocation strategy unchanged. The core driving force is the trend downward trend of the real interest rate of the US dollar. In the context of high global fiscal deficit, in order to reduce the cost of government debt repayment, it is expected that the core countries will be in a low interest rate environment for a considerable period of time. Under the influence of weak economic recovery and currency over issuance, the inflation center may gradually recover. The upward rate of nominal interest rate of US Treasury bonds will continue to be slower than that of inflation expectation, the real interest rate of US dollar will remain low, and the trend bull market of gold price will continue, which may soon challenge the historical high point. In addition, if the Federal Reserve implements the yield curve control (YCC) measures, that is, setting a ceiling on the nominal interest rate directly from the price side, it will also become an accelerator for gold to rise further, and the possibility of breaking through $2000 at a certain point can not be ruled out. Source: Yang Zeyu, editor in charge of economic report in the 21st century_ NF6036

China Merchants Bank also believes that the trend bull market of gold will continue, which may soon challenge the historical high and maintain the Gold Multi allocation strategy unchanged. The core driving force is the trend downward trend of the real interest rate of the US dollar. In the context of high global fiscal deficit, in order to reduce the cost of government debt repayment, it is expected that the core countries will be in a low interest rate environment for a considerable period of time. Under the influence of weak economic recovery and currency over issuance, the inflation center may gradually recover. The upward rate of nominal interest rate of US Treasury bonds will continue to be slower than that of inflation expectation, the real interest rate of US dollar will remain low, and the trend bull market of gold price will continue, which may soon challenge the historical high point. In addition, if the Federal Reserve implements the yield curve control (YCC) measures, that is, setting a ceiling on the nominal interest rate directly from the price side, it will also become an accelerator for gold to rise further, and the possibility of breaking through $2000 at a certain point can not be ruled out.