This week, the precious metals market volatility of each investment products accompanied by increased risk aversion warming. Especially in July, the price of silver came from behind gold prices picked up the pace, gold and silver prices fall rapidly than appears, or implied begin mid-reversal.
Message from the current perspective, the reasons for the current round of rising prices of gold and silver can be analyzed from the following three aspects. First, the Fed’s recent meeting was more cautious than the market expected, suggesting interest rates during the year time nodes may be delayed, which also makes the one hand from the Fed show for future economic recovery process concerns. Affected by the dollar index certain degree of decline, while gold and silver prices to give medium-term support.
Second, the end of June, the British off the European referendum the market in an uproar, panic suddenly warming. As the day of June 24, the international spot gold prices rose 4.75%, to refresh the record highs. At the same time, the market price and then make massive turnover rising point again.
Moreover, from the demand point of view, according to the statistics show that there is a strong seasonal factors affect the price of gold and silver. Into the second half, due to the current precious metal prices have been located in historic lows, while the year eight ninety-three month is precious metal sales season, therefore, physical demand blowout may have been ahead of the market’s reaction.