There are probably as many conspiracy theories about gold as there are about Elvis, Marilyn and Moon Landing, but this time the gold bugs may prove to be just right. Since gold prices crossed the $ 1000 mark last week, there is no reason to think that the price will continue to rise as long as support levels from the rest of the financial markets continue to rise. The list is long and wide There are those that, after being combined with a strong technical picture, suggest that spot gold prices could hold মূল্য 1000 per ounce price point before moving higher.
For traders and investors who are not familiar with reading gold charts or charts, I would suggest paying close attention to the US dollar and the state and destiny of China. One of the current reasons for this weakness of the dollar is the return to equity as investors rediscover their appetite for risk but this is not enough to explain the recent decline in attitude towards the dollar. In addition, if the Fed continues to highlight that US interest rates are not going to rise sharply, it will also put pressure on the dollar for some time.
Then, of course, there are China whose economic relations in the United States can best be described as marriage in which one partner is saver and the other is expensive. China sits on about ২ 2 trillion in foreign exchange reserves, half of which are in US dollars, and even a slight weakening of the greenback would see China’s assets severely damaged. China has not only responded by increasing the cost of goods in huge quantities, but has also tried to protect itself from the devaluation of the US dollar in recent months and has taken multiple steps. At first, at the recent BRIC summit in Russia, Chinese leaders strongly advocated for a new reserve currency instead of the dollar. Second China is buying both gold bullets and mining resources in Latin America, although it is itself the world’s largest producer of 27 per year.
Finally, in the most extraordinary transformation, the Chinese government is actively encouraging its citizens to buy precious metals such as gold and silver, which were banned until 2002. Each bank in China sells gold and silver cheap bars in 4 different sizes, and Chinese mining companies are encouraging their workers to convert some of their wages into gold. Gold is traded 24 hours a day in one form or another and now there are rumors that the export of silver has been banned, if true, it could mean gold later. There are also rumors that China is seeking to ban the export of rare metals needed for hybrid car and superconductor manufacturers.
Finally, Alan Greenspan’s remarks that the recent “price hikes of precious metals and other commodities indicate a very early stage of the effort to move away from paper currencies” will be enough to keep the current rally for some time.