Gold Prices Have Fallen 22% This Week.

< p > review last week, the market rekindled fears that the Federal Reserve could reduce the size of the debt purchase, prompting investors in the gold market to reduce their holding positions, resulting in a further 0.8% drop in gold futures prices in New York on Friday, and a 2.9% decline in gold futures in December, reversing a two week rally and ending at 1313.20 dollars per Anne. Spot gold prices in London fell more than 2.5%, reversing the two consecutive week's rally, and finally reported $1316.18 per Anne. < /p >
Last week's weak performance of gold price may continue until this week. The market will pay attention to the interest rate cut trend of the European Central Bank and the employment data of the United States P. < /p >
< p > review last week, the market rekindled fears that the US Federal Reserve might reduce the size of the debt purchase, prompting investors to cut their holdings in gold market, resulting in a further 0.8% drop in gold futures prices in New York in December, and a 2.9% decline in December's delivery of < a href= "http://sjfzxm.com/news/ index_cj.as" > gold futures < /a >, reversing a two week rally and finally reporting 1313.20 dollars per Anne. Spot gold prices in London fell more than 2.5%, reversing the two consecutive week's rally, and finally reported $1316.18 per Anne. < /p >
Lagueur P Richmond Jeffrey Lacker said last Friday that the recovery in the US employment market in the past 14 months has been strong enough to help the Federal Reserve reduce the scale of the debt purchase stimulus. < /p >
< p > any sign that the Federal Reserve may reduce the scale of the purchase of debt may exert great pressure on the price of gold. Fund and institutional investors bought gold as a hedge against inflation and central bank monetary policy measures in recent years. < /p >
< p > gold prices reflect the rise of the US dollar partly because gold prices are denominated in US dollars, and there is a strong correlation coefficient between them. The rise in the US dollar makes the attraction of gold as an alternative investment fall. < /p >
The US dollar index has climbed to a six week high. Data from the Institute for Supply Management show that in October, the expansion rate of manufacturing industry was the fastest in two and a half years, and the index rose to 56.4 points, which is higher than the 55 point average forecast made by Bloomberg survey economist. The index is higher than 50 points, indicating that the manufacturing sector is expanding, showing a contraction of less than 50. < /p >
< p > in addition, the euro zone a > inflation < /a > growth slowed sharply, making the market suddenly begin to consider the possibility of reducing interest rates in the short term of the ECB, which weighs the euro against the US dollar. < /p >
< p > < strong > gold price has dropped 22% this year, < /strong > /p >
"People are really beginning to worry about the size of the Federal Reserve's cut in debt purchases," said Frank Maggie, Frank head of P Integrated Brokerage Services, Chicago. The ISM data released last Friday is almost a fatal blow. " < /p >
< p > this year, the price of gold has fallen by 22%, which will hit the first annual decline in 2000. Some investors lost confidence in the function of gold as a hedge tool, while the US stock market hit a new peak. < /p >
According to the analysis report of P Kitco, the weak tone of gold last week may continue until early this week. Market participants say they will pay attention to the outcome of the meeting of the European Central Bank this week and the US employment figures. < /p >
< p > Jin Tuo's survey of market participants showed that among the 19 respondents, three were bullish on gold prices this week, 13 were bearish and three were flat. Market participants include gold traders, investment banks, futures brokers and technical analysts. < /p >
< p > there are market participants who believe that gold prices will test the bottom line of the current trading range, around $1270 to $1350 per Anne. Because in addition to the strong dollar, physical gold buying activities dried up when gold touched the top of the transaction. Solid gold buyers are very sensitive to prices, and may be waiting for gold to fall back to the low end of the transaction. < /p >
Market participants say this week will focus on the ECB meeting on Thursday and Friday's US non farm employment report October. It is speculated that the ECB may consider reducing interest rates because the euro area's inflation rate is lower than expected. This view has caused the euro to weigh heavily against the US dollar < a > exchange rate < /a >. < /p >