SunSirs: China's Precious Metals Usher in a Long-Short Game Point

Spot precious metals price trends in small bands during the year

According to data from SunSirs, the average price of silver in the early trading on March 10 was 5,330 yuan/kg, an increase of 2.83% during the day, compared with the average early-day spot market price of 5,480.33 yuan/kg at the beginning of the month (March 1), a decrease of 2.74%; compared with the beginning of the year (01.01) The silver spot price was 5550 yuan/kg, a decrease of 3.96%.

The spot price of gold on March 10 was 360.90 yuan/g, an intraday increase of 1.28%, compared with the early spot market price at the beginning of the month (3.1), which was an average price of 365.60 yuan/g, a drop of 1.29%; compared with the beginning of the year (01.01) gold spot price was 392.70 yuan/ Grams, down 8.10%.

Double the market and cut the price, precious metals usher in a long-short game point

The upward trend of precious metals since the start of November 2015 will reach a peak in August 2020, with the highest increase of precious metals being 90-100%. After the doubling of the market, the price of gold continued to fall, hitting a new low in nearly October, and the price of silver also fell to the low range in early January. Today, the price of precious metals both stopped falling and rose, and when the growth rate shrank to 50%-60%, precious metals Will the price usher in an inflection point?

SunSirs analysts believe that the price of precious metals ushered in a long-short game point. In the long term, real interest rates remain low, central banks of advanced economies will continue to purchase government debt, industrial demand will increase, demand for silver used in the disinfection and medical industries, and consumer demand for jewelry and gold and silver will also increase, and other factors will affect precious metals. Power.
The recent silver price trend is relatively firmer than that of gold, mainly based on two factors. On the one hand, similar to GameStop’s silver short-selling news, it helped the silver price to rebound sharply in mid-to-late January this year. Looking back on the historical trend of silver prices, it can be seen that after silver plummeted to a new 11-year low in March 2020, it surged upwards. Doubled, it can be seen that the price of silver is greatly affected by the fluctuation of investment sentiment. The short-term speculative atmosphere with silver as the subject matter is stronger and the amplitude is greater; on the other hand, the industrial attribute of silver is relatively strong, and the recent trend of bulk metal commodities has been rapid after the year. They have pulled up to historical highs in recent years. The strong support for silver prices comes from fundamental factors. For example, the increasing demand for solar panels in the automotive industry and other industrial uses will boost the future demand for silver from solar photovoltaics.

 Short-term focus

1. The high commodity price correction will affect the sentiment of precious metal prices.

 2. The U.S. Treasury Department launched a new round of US$120 billion Treasury bond auctions. The impact on bond yields and the impact of U.S. CPI data factors. If U.S. bond yields rise, investors’ optimism about U.S. economic growth will increase, which will put pressure on the precious metals market.

 3. Whether investment demand has narrowed. According to data from the World Gold Council, the outflow of global gold ETFs in February was 84.7 tons, which was the third net outflow of gold ETFs in the past four months. According to data from the World Gold Council, the outflow of global gold ETFs in February was 84.7 tons. The third net outflow of gold ETFs in the past four months.

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