The US Dollar Is Expected To Hit &Nbsp By Interest Rate Cuts, And Gold Is Over 1340 US Dollars.

On Tuesday morning, Beijing time, on Tuesday, the Bank of Japan cut its official lending rate for the first time in two years.

The New York Mercantile Exchange's main gold contract in December rose $23.50 to $1340.30 an ounce on Tuesday.

Charles Nedo J, a senior market strategist at OLYMPUS Chicago Futures Company, said, "the gold market has flooded with a large number of new investors. Their buying has directly promoted the rise of gold prices.

Market participants have treated gold as a currency, especially when devalued banknotes are everywhere. "

In a customer report on Tuesday, Core Company analysts pointed out that the decision of the Central Bank of Japan to cut interest rates was not expected by the market, but that the Federal Reserve would continue to carry out similar expectations of more monetary stimulus measures.

This will continue to support the gold price trend.

According to the statement of the Bank of Japan, the Bank of Japan plans to invest $419 billion in the monetary easing program, including purchases of treasury bonds and corporate bonds.

The so-called quantitative easing measures increased the risk of long-term depreciation of the US dollar and increased the risk of inflation.

Investors usually choose to purchase precious metals for hedging.

After the decision of the BoJ, the yen fell 0.6% against the euro.

But on the other hand, when the market thinks that the Fed has taken similar measures, the dollar exchange rate is down.

The US dollar fell by 0.4% against the yen, while the US dollar index, which tracks six major currencies in the same period, dropped 77.73 points to 0.92%.

The main bank of silver followed gold trend on Tuesday, followed by a 30 year high. In December, the main contract rose 70 cents, or 3.2%, at $22.74 an ounce.

In December, the main copper contract rose 6 cents to 3.73 dollars per pound, or 1.7%.

This is also the highest price in the 26 month copper contract.

In a customer report on Tuesday, Goldman Sachs analysts believe that there will be "extremely short supply of cyclical spot copper market" in 2011. The report also believes that copper prices will fluctuate considerably. "Because of the global growth trend driven by (emerging market urbanization) and the shortage of medium term supply growth expectations", copper prices may remain high.

Meanwhile, gold prices narrowed at a time when the service management index of the US supply management association was released in September.

The United States supply management association September index of service industry reported 53.2 points, the August value of the index is 51.5 points.

He emphasized that gold prices will remain strong in the short term.

If this week's gold price can rise again, it will be the ninth weekly increase in 10 weeks. "We think that gold prices will explore $1350 an ounce this week.

If there is no clear resistance in this position, the price of gold is expected to reach US $1400 per ounce in the short term. "