Global Stock Market Capital Fled Frantically! Gold Bulls Take The Opportunity To Skyrocket

China's A shares staged a roller coaster trend, setting the biggest decline in a single day in the past five years, which also brought pressure on global stock markets and increased investor risk aversion.

With the frenzied escape of stock market funds, gold, silver and other commodities were lifted, and the international gold price has been refreshed since October 23rd to 1238.1 US dollars / ounce.

Greek Prime Minister Samaras (Antonis Samaras) nominated the former EU environmental Commissioner Stavros Dimas on Tuesday as the candidate for the presidency. If the big gamble fails, he will be forced to hold an early parliamentary election, and the left-wing party that is against the bailout is likely to win.

The European stock market plunged to a two week low on Tuesday after the Greek government unexpectedly announced the early presidential election. The Greek stock index plunged 12.8%, the biggest decline in November 1987.

Besides, Monday

Weakness and poor economic data in China have dragged down the global stock market crash, prompting investors selling yen in recent days to fill positions.

Omer Esiner, chief market analyst at Commonwealth Foreign Exchange, said: "we see that the risk will be totally cooled. This is supported by the weak oil price and the situation in Greece."

As exports fell, gold imports soared, India's current account deficit increased more than expected, and the quarterly deficit rose to its highest level in the 2 quarter of 2013.

Anubhuti Sahay, an economist at Standard Chartered Plc in Mumbai, said, "gold imports may increase, but not as attractive as early 2013, and demand is rising."

Crude oil occupies a larger proportion of total imports, and low oil prices should be beneficial to narrowing the deficit. "

Tim Gardner, global metals director of TD Securities, said: "the reason for buying so much is that there have been some changes in asset allocation, and capital flows out of the stock market into risky assets.

Gold has been in the air for the past month, and now there has been a push from the short supply, and some new ones have been promoted by market momentum.

Marnie Owen, global head of technology analysis department at Informa Global Markets, said that the sharp rise in gold prices confirmed a bullish finishing pattern. According to the measured mobile target, the next target was $1265, followed by a $1282 flag position.

Gavin Friend, senior market strategist at NAB, said: "after the US released non farm employment data on Friday and the European Central Bank (ECB) talking about quantitative easing, they were slaughtered in the dollar at the beginning of this week."

Ole Hansen, an analyst at Saxo Bank, thinks that the reason why gold prices are showing some rebound is because some holders of short positions are waiting for the new year to leave, so they wait and see.

On the other hand, central banks continued to buy, and India relaxed the import restrictions and other news, which provided some support for gold.

He believes that gold ETF is unlikely to emerge again.

However, some analysts pointed out that the volatility of overseas markets was mainly affected by the adjustment of positions, rather than the basic view.

"This is essentially a short-term fluctuation, with low liquidity and exaggerating the rise and fall," the CitiFX analyst team said in a customer report.