The year of the Ox Gold Jewelry sales Hot Factory full-load production of gold prices are difficult to stop you hoarding enthusiasm?

With the Spring Festival approaching, the gold jewelry market ushered in a "hot season", shopping malls gold jewelry stores customers constantly, many consumers choose to add gold at the end of the year, to draw a "good lottery". What are the characteristics of gold consumption before the Spring Festival of the year of the Ox?

The sales of gold are hot, and the high price of gold is difficult to hinder the enthusiasm of consumption.

On Saturday, after visiting the gold jewelry counters in several shopping malls in the eastern part of Zhengzhou at lunchtime, the reporter found that there were many customers consulting or buying gold bars and gold ornaments in front of the counters of famous brands such as "Chow Tai Fook" and "Zhou Shengsheng". A gold jewelry store salesperson said that the pre-holiday gold consumer market is hot, compared with the past, the number of customers in the store has increased significantly, and sales have also increased significantly. Every day, inventory and preparation are busy until 11:00 in the evening. Some merchants said that the sales figures for January 2021 were much higher than those for any month in 2020, and the monthly sales figures for some stores even doubled.

It is understood that wedding gold jewelry is still the main sales force of the gold market this year. In addition, the small grams of gold jewelry in the zodiac series of the year of the Ox are also favored by consumers. In addition to the driving effect of the Spring Festival on gold consumption, the recent fluctuation of gold prices is relatively stable, which further promotes the popularity of gold consumption before the Spring Festival.

Some businessmen said that around the Spring Festival is the peak season for gold jewelry sales, while February 14 Valentine's Day happens to be the third day of the Lunar New year, so the merchants' stock demand is relatively large, and the gold price during this period will be relatively stable.

In addition, with the hot sale of gold jewelry in the year of the Ox, gold dealers and processing plants are very busy. It is understood that due to the recent wedding and ancient law series of gold jewelry order growth is particularly obvious, some gold processing enterprises have been in a state of full production. Since November last year, many enterprise orders have increased significantly, and some enterprises even have a certain backlog of orders.

Gold prices suffered their biggest weekly decline this year.

Comex April gold futures closed 1.2 per cent higher at $1813.00 an ounce as of the early morning close on February 6th, down 2.0 per cent this week. COMEX3 monthly silver futures closed up 3.0 per cent at $27.019 an ounce, up about 0.4 per cent this week. Analysts believe that the sell-off in long-term bonds will have a sustained and significant impact on non-interest-bearing precious metals assets as the improving economic outlook in the United States has boosted demand for risky assets. As a result, the price of gold fell to a two-and-a-half-week low since January 18.

In addition, the analysis believes that the overseas epidemic is still relatively serious, but the breakthrough in vaccine research and development may boost market confidence, superimpose a new round of US economic stimulus policies and low-interest environment, or support commodity trends. The global economic recovery and anti-epidemic governance share weal and woe, and the upward momentum of gold is still insufficient in the short term. The current rescue policy highlights the financial pressure, and gold prices are expected to continue to be complicated without a larger stimulus policy. Technical support is at US $1780 / oz and resistance is at US $1920 / oz.

World Gold Council: the total inflow of global gold ETF in January is close to 14 tons.

After a series of net outflows, global gold ETF funds achieved net inflows again in January 2021. According to data released by the World Gold Council on February 5th, global gold ETF inflows in January increased by about 0.4 per cent, and gold ETF assets under management increased by about 0.4 per cent.

The data show that the most obvious increase in gold ETF positions in January was in Europe, where gold holdings increased by 17.5t, with the UK's gold ETF fund increasing the most by 9.4t, followed by Germany and France, while North American gold ETF positions decreased by 6.3t, or about US $303 million.

Total positions in global gold ETF now stand at 3765 tonnes, about 4 per cent below the record high set in early November 2020. According to the World Gold Council report, positions in gold ETF funds reversed in January 2021, indicating that demand for gold investment through gold ETF remains strong and is the main driver of overall gold demand.

The World Gold Council predicts that investment demand for gold is likely to continue to be well supported in 2021, with the market still facing risks from a surge in budget deficits, rising inflationary pressures and a possible pullback, including when equity valuations are already high.

Did you hoard gold during the Spring Festival?

Gold has always been regarded as a good investment choice to reduce risk. On the one hand, buying gold can resist the impact of inflation and is a value-preserving asset; on the other hand, gold has the characteristics of high liquidity and strong liquidity. In addition, as a safe haven asset, gold is an indispensable part of many people's financial planning.

Will the gold price continue to rise in the future? Industry insiders generally believe that at present, the Biden government's fiscal stimulus of US $1.9 trillion, including an increase in unemployment benefits and cash cheques, is also a major source of income that can increase household consumption and help boost inflation expectations in the market. At present, despite the Democratic sweep of Congress, the Democratic seats in the Senate still do not have a majority of votes, so there may be some minor twists and turns in the subsequent fiscal stimulus. Overall, the third round of fiscal stimulus is bound to be in place, but the overall size may be slightly less than $1.9 trillion.

Jinxin Futures Precious Metals analyst Hu Yue believes that the recent changes in the fundamentals of precious metals are relatively small, mainly to consolidate the market. Although monetary policy remains loose to support precious metals, the tightening expectations released by the Federal Reserve have made the market more sensitive to the subsequent turnaround and there is more pressure above. In terms of fiscal policy, the probability of a smooth launch is small, there may still be small twists and turns in the follow-up, and the probability of a rapid rebound of precious metals in the short term is small. In terms of gold, if the disturbance of funds to gold is small, then the precious metals are mainly arranged horizontally. Silver, as a result of being favored by overseas funds, there will be sharp fluctuations in the future, mainly wide oscillations, due to vigilance of unilateral positions, consider to adopt hedging operation strategy.