International Gold Price Falls Below 1300 US Dollars Per Ounce. Gold Will Remain Weak In The Short Run.

Last Thursday, New York gold futures closed down 6.4%, hitting a two-and-a-half low on Thursday.

Last Friday, although it rebounded, it closed at $1292 an ounce, but it remained below $1300.

Yesterday, reporters visited a number of gold jewelry store in Zhengzhou found that the price of thousands of gold has fallen below 350 yuan per gram, and some offer to 338 yuan per gram.

Unlike the last big drop in gold, investors and consumers are becoming more rational.

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< p > < strong > international gold price falls below 1300 US dollars per ounce < /strong > /p >

Last Friday, New York gold futures closed up 0.5%, closing at $1292 an ounce.

However, last week, four fell 6.4%, setting the lowest closing price since September 2010.

The main reason is Ben Bernanke, chairman of the Federal Reserve, suggesting that the bank may begin to reduce the scale of the quantitative easing program by the end of this year.

In last week's trading, New York gold futures fell sharply by 95.60 US dollars.

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In recent years, the Federal Reserve's "quantitative easing" policy has always been a support for gold prices. < p >

Bernanke said last Wednesday that the Fed could begin to reduce the scale of "quantitative easing" by the end of the year and terminate the plan by mid 2014.

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< p > < strong > the price of thousands of gold in our city falls below 350 yuan per gram < /strong > < /p >

< p > yesterday, the reporter saw in front of a gold ornament square in 27 square, the gold price per thousand gold was 338 yuan per gram, which is also the lower price in the whole city.

And at the gold counter of a large shopping mall in 27 square, some thousand gold prices are priced at 355 yuan per gram, and some are priced at 349 yuan, but the cost of processing is another calculation.

Of course, some counters also offer preferential measures, such as cash payment of 400 yuan, which can be reduced by 30 yuan.

A salesperson told reporters that the price of gold during this period is low this year, and businesses discount discount activities are also more.

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< p > reporter noted that although many gold brand counters are still crowded with people who come to consult and buy, and female consumers are the main ones, but with the low level of gold prices stabilising and downwards, and the sound of empty gold coming out from the periphery, the enthusiasm of consumers to buy gold has weakened.

In the last round of the gold crash, "China's mother" became famous in the first World War.

Recently, gold has plunged again, and "China's aunt" has obviously cooled down a lot.

The industry believes that after the last gold rush, investors and consumers are becoming more rational and there is no new round of gold buying boom.

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< p > March 2008, New York's gold and crude oil futures prices hit a new high by the US dollar's impact on the other major currencies in terms of new and low innovation factors, of which gold futures had a historical breakthrough of 1000 US dollars per ounce.

At the end of August 2011, international gold prices hit a record high of $1981.90 an ounce, almost 2000 dollars.

At that time, thousands of gold prices of gold and jewellery shops in Zhengzhou had reached more than 460 yuan per gram, and some brands were even higher.

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< p > < strong > gold will remain weak in the short run < /strong > < /p >.

< p > survey shows that 44% of economists expect the Federal Reserve to completely suspend the asset purchase policy in June 2014, namely Quantitative Easing (QE).

Almost all of Wall Street's bond dealers believe that the Federal Reserve will begin to reduce the size of QE by the end of the year.

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< p > a senior futures analyst in Zhengzhou, Mr. Yang believes that the withdrawal of quantitative easing will reduce the attractiveness of gold as a hedge against risk, and the probability of further downward pressure on gold prices will be greater.

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< p > data show that the cash cost of the gold mining industry has increased from $200 an ounce in 2002 to $700 an ounce; if the total cost is calculated, the total cost of gold production in the gold mining industry is now $1100 to $1200 an ounce.

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