International gold price reaches new high again, can A-share market catch up?

category:Finance
 International gold price reaches new high again, can A-share market catch up?


Gold concept stocks in the A-share market also surged. As of noon, gold in Western China was up and down. Chifeng gold, Shandong gold and Zhongjin gold all rose by more than 8%.

Earlier, on July 8, the international gold price successfully broke through 1800 US dollars / ounce. In just 16 days, the price of gold broke through $1900 again.

Zhang Wei, an analyst with Zhuo Chuang information precious metals, said that the recent rise in gold prices was mainly driven by two factors. On the one hand, the epidemic situation in the United States may ruin several rounds of economic assistance efforts in the second quarter, and there is a risk that employment and consumption will deteriorate again. On the other hand, a new round of overseas economic stimulus measures is coming, and the previous rounds of large-scale emergency rescue measures have led to a continuous decline in bond yields, greatly reducing the opportunity cost of holding safe assets such as gold and silver, and the return of value of physical assets.

In the short term, we need to guard against the risk of gold and silver prices going high and retreating. In the medium and long term, the rising trend of gold and silver prices will not change. Zhang Wei said.

Corresponding to the rise of gold price in virtual market, the price of physical gold of major domestic brands has also risen to the highest level in recent years.

According to wind data, as of July 24, the prices of physical gold in famous domestic gold stores, such as Laofengxiang, Zhou Dasheng and Laomiao, were in the range of 530 yuan / g to 550 yuan / g, all reaching a new high in nearly a decade.

At the same time, the global gold ETF maintained the momentum of continuous net inflow. According to the data of the world gold association, as of the end of June, the global gold ETF has seen a record net inflow for seven consecutive months. Among them, the total amount of global gold ETF increased by 104 tons in June, making its total position reach a record high of 3621 tons. In the first half of this year, the total inflow of gold ETF reached 734 tons, far exceeding the previous annual record.

Gold investment is still available in the second half of the year

Hu min believes that gold demand is expected to remain strong. In the long run, interest rates will remain low, and overseas economic recovery may be overshadowed by repeated setbacks. The upcoming U.S. presidential election has also raised concerns among many investors, which will support gold demand. Therefore, physical gold will continue to play a very important role as an investment product.

The gold market seminar in the era of great changes sponsored by the world gold association and other units was held in Beijing on July 25. Rui Qiang, chief market strategist and head of Research Department of the World Gold Council, said at the meeting that the uncertainty of the global economy will support gold investment in the second half of the year.

Rui Qiang said that the epidemic has had a very serious impact on the overseas economy. At first, the market expected a rapid V-shaped recovery, but at present, it is transforming into a slower U-shaped recovery, or even more likely a W-shaped recovery. Uncertainty will remain high and is likely to have a lasting impact on the portfolio.

He believes that in the second half of this year, the following key factors will affect the gold trend:

First, high risk, low opportunity cost and the recent performance of gold price; second, the sharp rise in the stock market (especially the US stock market) may make the market enter the adjustment period; third, the bond yield expectation is low, and the extremely low yield weakens the hedging function of bonds; fourth, the market is worried about deflation or inflation. Huang Shiyun, managing director and senior gold analyst of ylg group in China, said at the meeting that gold has always been an effective tool to combat inflation and currency devaluation. Under the environment of low interest rates, inflation and ultra loose policy overseas, gold prices have reached record highs in the euro area and the yen area. I believe that gold denominated in US dollars will soon enter the link of record highs. Source: Yang Qian, editor in charge of Shanghai Securities News_ NF4425

First, high risk, low opportunity cost and recent gold price performance;

Fourth, the market is worried about deflation or inflation.

Huang Shiyun, managing director and senior gold analyst of ylg group in China, said at the meeting that gold has always been an effective tool to combat inflation and currency devaluation. Under the environment of low interest rates, inflation and ultra loose policy overseas, gold prices have reached record highs in the euro area and the yen area. I believe that gold denominated in US dollars will soon enter the link of record highs.