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Has the opportunity to buy on the bargain been missed after the gold rally?
Jul 27,2020 16:25CST
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Source:Gold headlines
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SMM News: the rising trend of the gold market continues, the gold price broke through the 2011 high, setting an all-time high.

Spot gold prices once broke through the $1940 / oz mark within the day.

Vivek Dhar of (Commonwealth Bank of Australia), the Australian federal bank, said the fall in US 10-year Treasury yields was the main reason for gold's rise, as did the weakness of the dollar and rising risk aversion in the market.

Dhar said that the negative correlation between US real interest rates and gold prices has been maintained, because gold itself will not have similar interest rates.

"now the decline in real interest rates in the US is affected by inflation expectations."

In this case, the cost of holding gold is almost zero, says The Global CIO Office's Johan Jooste.

"We've been talking about buying bargains, but it's hard to do that now because we may have missed the opportunity."

Eugen Weinberg, head of research at Commerzbank (Commerzbank), said it would not be a big surprise for gold to break the $2000 / oz mark this week.

Weinberg pointed out that although the market is slightly overbought, the whole face of gold is basically positive.

"there is no bubble in the gold market, and there are trillions of negative interest rate bonds in the whole market, which will continue to support gold."

However, Everett Millman, an expert on precious metals at Gainesville Coins, said that the price of gold may have risen too fast and too much, and some investors may choose to take profits.

"after such a big rise, there will be a correction in the market."

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