SMM12 March 29: during the day, precious metals opened high and went low, the main contract of Shanghai Bank of China fell by 1.06%, and the main force of Shanghai Gold fell by 0.63%. After Trump signed the stimulus package, gold was widely seen as a tool for inflation and currency depreciation, with its biggest one-day rise in nearly a week. The current policy landing, coupled with the impact of events such as the overnight impact of the three major indexes of US stocks hitting new record highs, have pushed precious metals higher and lower today.
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Although precious metals are under short-term pressure, speculators' bullish sentiment on silver continues to rise, with net long positions in COMEX rising for the fifth week in a row and rising to the highest level since February, while net long positions in COMEX gold contracts also hit an eight-month high. In the week ended December 21, long positions in COMEX silver futures increased by 9784 to 90473, COMEX short positions increased by 2007 to 33184, and non-commercial net long positions increased by 7777 to 57289 contracts, according to CFTC.
Under the support of uncertainties in the future financial environment and lower real interest rates, more investors in the industry remain optimistic about the gold price in the future, or even estimate the gold price or stand above the 1900 mark again.
Hussein Sayed, chief market strategist at FXTM, points out that gold will be an important choice for capital inflows if fund managers want to lock in some returns and reduce risk. "as long as real interest rates remain depressed, we will continue to be bullish on gold. This situation will continue next year. "
Jim Wyckoff, a senior analyst at Kitco, said the first resistance to gold's upside is $1889 / oz, followed by the $1900 / oz mark. The lower support is at 1859 level and 1850 USD / oz.
The Sprott fund believes that although the gold market has gained a lot this year, there is enough reason to rise in the future. The fund pointed out that low real interest rates, a large amount of debt in the United States and around the world, and debt with negative interest rates will continue to push gold prices higher.
