SunSirs: Chinese Precious Metal Gold and Silver Prices Stabilize

1. Spot precious metal price trends

According to data from SunSirs, the spot price of gold on September 29 was 403.78 yuan/g, which was 4.68%% lower than the average spot market price at the beginning of the month (9.1), which was 423.60 yuan/g; and was 342.54 yuan/g from the beginning of the year (01.01). Gram, an increase of 17.88%; compared with the year's trough (3.19) gold spot price of 331.75 yuan/gram, an increase of 21.71%; compared with the year's peak (8.7) silver spot price of 448 yuan/gram, a decrease of 9.87%.

The average market price of silver on September 29 was RMB 5,014.33/kg, compared with the average spot market price at the beginning of the month (September 1) of RMB 6,237/kg, a decrease of 19.60%%; compared with the spot price of silver at the beginning of the year (01.01) RMB 4,281.67/kg , An increase of 14.58%; compared with the year's trough (3.19) silver spot price of 2,942.67 yuan/kg, an increase of 70.40%; compared with the year's peak (8.11) silver spot price of 6,708.33 yuan/kg, a decrease of 25.25%.

2. After the end of the strong rebound of the US dollar index

The dollar index, a negative reference indicator for precious metals, rebounded strongly last week, with 2 consecutive negatives this week, and the continued upward trend ended.

3. The market outlook is expected

In the early stage, the international market was affected by the strengthening of the US dollar and the rise in real interest rates, and investors' preference for precious metals decreased relatively; after the high and sideways precious metals experienced continuous plummeting, the current profit-making market fled and the market entered the bottom of the capital game began, and market confidence gradually established.

SunSirs analysts believe that the monetary easing policies of major central banks continue, and the price support factors are still there. In addition, the Sino-US situation, the Taiwan Strait situation, and the Sino-Indian border conflicts and other geopolitical risk events frequently occur. The room for further downward adjustments in precious metal prices has narrowed and stabilized. Increased probability of sideways operation.

4. Key indicators for market outlook

1) The latest US non-agricultural data released on the first Friday of October (refer to the ADP data of the previous day in advance)

2) PMI released at 9 o'clock on the first working day of October

3) GDP data for the third quarter released around October 15

4) Central bank policies and Fed policies of major economies

5) Brexit trade negotiations, U.S. election debates, and emergencies in geopolitical games

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.