Attentive investors may find that the international price of gold over the past few days and the dollar has been fly together. Since November 5, while the dollar index rebounded ushered in a long absence, less than 76 full points from the lowest to the highest rise of 77 points or more, but the United States over the same period gold plate it is also the day New York to a new high, and rose to 1400 on Monday USD / oz at the top. So far, gold has broke through 100 U.S. dollars during the third integer mark, since this year, up more than 28 . To dispatch, the U.S. has reached $ 1420 gold plate / ounce.
Are the fault of Europe
Not Iceland or Greece, this time for the price of gold to fuel the turn of the European countries and Ireland. In a report released Monday questioned the ability of the Irish deficit reduction next year, so that the debt default insurance costs. PFGBESt futures broker Michael Daly, said the debt situation in Ireland as expected, prompting investors to switch funds to gold hedging. The Hungarian government also announced on Monday, the October deficit was HUF 43.6 billion, significantly more than in September this year, HUF 7.7 billion. A series of bad news that the market for the euro zone sovereign debt crises fears, gold homeopathic highs.
Not of precious metals rose with the dollar s fall, as euro zone countries will be deeply indebted issuance again this week, while many major events the United States come to an end, the focus will be gathered in the natural market faltered in Europe.
Some people may think that Ireland, the performance of small economies can not represent the whole of Europe, but surprisingly, some European countries have been performing well recently, had Wanjiebubao. Gold reported that high Purcell, Germany this week also announced a less than satisfactory economic data: Germany 9, adjusted industrial output rose to 0.8 qoq, the data before the value growth of 1.5 , 0.4 expected results not only in weaker than expected, compared to the previous data also declined substantially. This shows the German economy is already affected by the euro exchange rate, on the other hand that the ECB still put money to save the economy. Germany is the most do not agree with one of the countries of quantitative easing, the euro may rise now a tremendous impact, so their attitudes may change in the future, it will naturally affect the European Central Bank.
Pull out the carrot out of mud, Ireland debt door people quickly recalled on Nov. 7 of a World Bank President Robert Zoellick s comments may seem insignificant. The comment urged the developed economies to consider amending and re adopt the gold standard, the exchange rate in order to avoid disputes between States. Zoellick called for a new currency system, which may need to address the dollar, euro, yen, pound sterling and the yuan, as well as an open capital account.
Node in the argument put great coincidence of time. G20 Summit currently being held in Seoul in full swing, the natural or the main topic of the exchange rate issue. Because the United States has launched a 600 billion U.S. dollars of the second quantization easing American printing press will undoubtedly become a target of public criticism, a number of countries, monetary policy may be triggered retaliatory. So the market in Europe and the Bank of England is expected to expand the money supply growing sense, this is a major positive factor for gold.
Zoellick s remarks show his recent war on the global economic impact of the exchange rate concerns, of course, this proposal is difficult to achieve in the short term, but for the market, it will increase the gold charm.
China has also become grounds for speculation?
Unexpected is that the price of gold went so far been ascribed to the China factor contains more surprising is that China s favorable factors on the price of gold actually comes from ordinary transmission of energy and food. Federation of Industry and Petroleum Industry Association s monitoring shows that Beijing, Shanghai, Chongqing, Dalian, Hefei, Wuhan and other cities have experienced the tension of diesel. Surprise to power cuts, focus on maintenance of refineries, industrial transport demand increased, deliberate push the price, and other factors led to the recent diesel prices rose. While the price rose due to a serious upside down, but also makes the market stockpile more and more private enterprises in many gas stations have been discontinued. Affected by this, last week, Shandong, processing imported oil to refining profitability continues by leaps and bounds, as of November 6, the local processing of imported fuel oil refinery profit up to 432.5 yuan / ton, compared to last week, jumped 128.09 yuan / ton, again Since 2009, the highest impact on profitability.
China s economy is currently facing a diesel oil because not only China s logistics and transport will be a huge impact, it will affect this year s harvest, thereby affecting the planting this year and next year s food production. High food prices already reflect the consequences of the crisis, and this crisis if it can not be effectively resolved before the harvest season, the impact on China is likely to continue into next year, the impact of short term nature is to increase domestic inflation pressures. China s huge economy into inflation, the price of gold will naturally be good, if China is deeply food prices spiral, after all, a precious metals trading opportunities.
China factor will also bring investment opportunities to do more to bring gold trading risks, because inflation could lead to changes in interest rates China s central bank. Since the end of July this year, the price of gold rose again sided since the only time a decent pullback in 10 months late, time points and the consistency of China s central bank to raise interest rates, unless the Federal Reserve meeting on interest rates, precious metals may have a larger return tone. If the Chinese central bank to raise interest rates means that China and India, may step in Australia s footsteps and enter the rate hike cycle, while the Fed s policy is relatively neutral, then gold will face tremendous pressure to adjust.
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