News summary
Geopolitical risks drive up demand for precious metalsfreefiveplaydrawvideopoker, China's real estate stimulus and the European Central Bank's expectation of interest rate cuts will enhance the liquidity premium of gold and silver, be bullish on gold and silver trends, and be wary of short-term fluctuations. Federal Reserve meeting minutes and US and European PMI became the focus of the market.
Newsletter text
[Precious metals market ushers in a new atmosphere]
International political turmoil has led to rising risk aversion, declining inflationary pressures and strengthening expectations of the European Central Bank to cut interest rates. The latest stimulus policies in China's real estate market attractfreefiveplaydrawvideopokerThis series of factors have driven the rise in gold and silver prices, attracting investors 'attention. In London, silver prices climbed to 32.freefiveplaydrawvideopoker.5 USD/ounce, subsequently adjusted to 31freefiveplaydrawvideopoker.1 US dollars per ounce, while silver holdings in the Shanghai market fell sharply.
In the long run, investors in the precious metals market still need to be wary of short-term sharp price fluctuations.
London gold prices have broken through the volatile range since the second half of 2020, showing new momentum. Slowing U.S. economic growth and political risks in Eastern Europe and the Middle East have provided a major support for the gold market. At the same time, the Chinese government's series of measures to stimulate the real estate market have not only raised economic growth expectations, but also reduced safe-haven demand for the US dollar, thus indirectly affecting the precious metals market.
The minutes of the Federal Reserve's meeting, the preliminary PMI values for Europe and the United States in May, and the remarks of central bank officials are the focuses that investors need to pay close attention to this week.
In the short term, gold and silver prices show an upward trend. The Federal Reserve announced that it will slow down the pace of shrinking its balance sheet, and monetary policy is unlikely to tighten in the short term. In addition, the slowdown in U.S. economic growth has injected expectations into the market that the Federal Reserve may cut interest rates. Interest rate cuts by the central banks of Switzerland and Sweden, as well as expectations of interest rate cuts by the European Central Bank and the Bank of England, further boosted the liquidity premium of precious metals.
At the same time, as a global manufacturing base and a major consumer of bulk commodities, China's policy adjustments have had a greater impact on the industrial metals market, especially silver. Globally, investors 'enthusiasm for investing in gold has increased, and silver has become a strong competitor to gold due to its industrial attributes and market volatility.