What Drove Gold Prices Up?

< p > on Monday, the people's Bank of China announced the liberalization of interest rates announced on Friday last week, which triggered a market expectation that China's "a href=" http://sjfzxm.com/news/index_cj.as "investment" /a "will buy gold on a large scale to avoid risks. Gold prices rose and broke for the first time in five weeks, breaking the $1300 per ounce mark for the first time. On the other hand, the fall in the US dollar exchange rate also supported the upward trend in the price of commodity futures contracts, including gold, in the US dollar, which helped gold price rise for the most single day in more than a year, and the main force in the gold trading market rose to $1336 per ounce.

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< p > the New York Mercantile Exchange August main force a href= "http://sjfzxm.com/news/index_c.asp" > Gold < /a > contract rose 43.10 dollars on Monday, closing at 1336 US dollars per ounce, or 3.3%.

This is the first time since June 19th, the main contract has closed at more than US $1300 per ounce, regardless of the percentage or absolute value increase of the US dollar, which is the largest single day increase since June 29, 2012.

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The US dollar index for the P Intercontinental Exchange, which tracks the six major currencies, fell to its lowest level since 82.047 early Monday.

The relative weakness of the US dollar makes it cheaper for investors to use other currencies to hold commodity futures contracts priced in US dollars, including gold, which is a clear support for prices.

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< p > the people's Bank of China announced on Friday that it would abolish the control of lending rates and allow financial institutions to set lending rates on their own.

The analysis pointed out that this actually abolished the lower limit of bank loan interest rates, but did not abolish the upper limit of deposit interest rates. China's family has been the second largest gold buyer in the world. It may even win the world's first laurel crown in 2013 because of India's restrictions on gold imports. "The cost of borrowing is lower, but depositors are not getting the benefit, which means buying gold."

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< p > economic data, the data provided by the National Association of real estate brokers show that the sales of home sales in June have dropped by 1.2%, and the annual total volume adjusted by the quarter is 5 million 80 thousand, far less than the average expectation of 5 million 280 thousand economists.

Data further widened the decline in the US dollar exchange rate.

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"P >" a href= "http://sjfzxm.com/news/index_s.asp", "economic http://sjfzxm.com/news/index_s.asp", "economic < /a", pointed out in a research report on Monday that although the mainstream market thinks silver price trend will surpass gold, but considering the relatively small scale and liquidity of the silver market and the greater reliance on the global economic trend, they still think silver's price performance will continue to be less than that of gold.

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< p > according to the latest macroeconomic forecast of Kay, gold prices will be $1360 an ounce at the end of 2013, higher than the previous forecast of $1320 an ounce, and 1440 dollars an ounce at the end of 2014, which is also higher than the forecast value of 1400 US dollars per ounce.

The forecast for silver prices at the end of 2013 is US $20.50 per ounce and will fall to US $19 per ounce by the end of 2014.

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In terms of other metals prices, silver rose $1.05 in September, closing at $20.51 an ounce, or 5.4%, while copper rose 4.5 cents in September to $3.19 a pound, or 1.4%, in September, P.

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In October, platinum rose 16.80 U.S. dollars on Monday, closing at $1448 an ounce, or 1.2%. In September, palladium rose 70 cents, or 0.1%, at $750.45 an ounce.

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