SMM6 21 month news: the international spot gold market opened in early trading at 1359.98 U.S. dollars / ounce briefly fell, recorded an intraday low of 1357.40 U.S. dollars / ounce after rising, gold prices concussion upward. COMEX gold futures prices of the main contract rose above the $1400 mark, a nearly six-year high. At present, US futures rose 0.64 per cent to $1405.9 an ounce. Affected by the current surge in international gold prices, the increase in Shanghai gold prices has expanded to 2%. SMM expects gold prices to improve throughout the year, maintaining a bullish trend.

Yesterday, the fifth round of voting was held for leader of the Conservative Party and the next prime minister. Through the vote, the two final candidates of the British "phase" came out, and the advantage of Johnson, the tough representative of the Brexiters, is still very clear. Ahead of the Brexit deadline on October 31, the uncertainty of Brexit will continue to heat up, which may also be good for safe havens such as gold.

Now, gold prices have been depressed for many years, gold stocks are also quite cheap. The outbreak of gold prices is mainly affected by the following aspects.

First of all, the recent economic data released in the United States are relatively weak, which has a certain role in promoting the rise in the price of gold. The ISM manufacturing index and the present value of non-farm payrolls in the United States have declined compared with the previous value.

Second, the Fed announced the results of the rate cut in the early hours of yesterday morning, and the Fed held its meeting in June to keep interest rates unchanged, raising expectations of a rate cut in the future, and the problem of interest rate cuts continued to ferment, leading to gold standing in the tuyere. And central banks around the world are expected to cut interest rates.

Golden bulls believe that the US government and the Federal Reserve will never return to normal deficit levels and normal interest rates. The era of tight monetary policy is gone, which will greatly benefit the price of gold.

Third, gold is bullish by a number of central banks around the world, most of which continue to buy gold, with global central banks buying 651t of gold in 2018, up 75 per cent from a year earlier, according to the (World Gold Council) report of the World Gold Council. This is the largest purchase of gold by a central bank since 1971. Among them, the Russian central bank gold purchase is the most aggressive, is already the world's fifth largest holder of gold. In addition, due to increased global instability, Iran, Venezuela and Turkey are also accelerating their purchases of gold.

Finally, due to the intensification of the oil problem in the Middle East and the contradiction of crude oil transportation in the Gulf region, the risk of crude oil price fluctuation and risk aversion will increase, which will increase the demand for gold in the whole market.