SMM7 March 28: precious metals continued to rise in early trading, the main Shanghai silver trading limit, a new high of more than 7 years; Shanghai gold rose nearly 3% in early trading, as high as 440.08 yuan / g. However, near noon, as the price of COMEX gold and spot gold fell rapidly, leading to a simultaneous decline in the inner price of gold, as of press time, the Shanghai Gold 2012 contract rose 0.77% to 430.7 yuan / g.
In addition to the sharp rise in gold prices due to the surge in global novel coronavirus cases and geopolitical tensions, the most important reason is that central banks such as the United States and Europe have released a large amount of liquidity, resulting in negative real interest rates in the United States. The market is also expected to launch a new round of stimulus package in the United States. However, last night, Republican senators announced the benefits of the $1 trillion anti-epidemic stimulus package, and there are differences between the two parties and even within the Republican Party, it is still uncertain whether the stimulus bill can be finally passed and successfully implemented.
Today, some gold bulls chose to take profits, and gold prices plunged sharply in the short term. Gold's record rally showed signs of losing momentum after COMEX futures hit an all-time high of $2000, while silver fell briefly as investors began to assess whether prices were rising too fast. In addition, the dollar recovered some of its earlier losses as some traders took profits.
In addition, according to the China Gold Yearbook 2020 issued by the China Gold Association in the morning, by the end of 2019, the country's identified gold resources reserves had reached 14131.06 tons, an increase of 3.61 percent over the same period last year, and China's gold identified resources reserves had increased for 15 consecutive years and exceeded the 10,000-ton mark for five consecutive years. In the first half of the year, national gold consumption was 323.29 tons, down 38.25% compared with the same period in 2019.
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