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SunSirs: Bullish News Hits, Precious Metal Prices are Showing Signs of Bottoming out

August 25 2021 08:31:20     SunSirs (Linda)

Precious metal spot price trends

The average price of silver in the early trading on August 24 was 5047.33 yuan/kg, which was an increase of 2.02% from the average spot market price of 4,947.33 yuan/kg on the 23rd; compared with the average early-morning price of 5,329.67 on the spot market in early August (August 1) Yuan/kg, a decrease of 5.30%; compared with the beginning of the year (01.01) silver spot price of 5550 yuan/kg, a decrease of 9.06%.

On August 24, the spot price of gold in early trading was 376.43 yuan/g, which was an increase of 0.65% from the spot price of 374 yuan/g in the early trading on the 23rd; compared with the early August (8.1) spot market price in early trading, the average price was 366.77 yuan/g, a decrease of 0.99%. ; Compared with the beginning of the year (01.01), the spot price of gold was 392.70 yuan/g, a drop of 4.41%.

Silver deep pullback 24 days convergent rise

The price trend comparison chart of precious metals gold and silver (see below) shows that the operating trends are generally similar, and the price of silver has a larger fluctuation. The price trend of last week has deviated. On the 24th, the price converged and rose. After the depth of silver moved down, it also showed a bottoming. Signs of rebound.

News aspect factor

1. Weak US economic data

The initial value of the Markit Service Industry Purchasing Managers Index in the United States in August dropped to 55.2, which was far lower than the expected 59.2 and also lower than the 59.9 of last month. In addition, the initial value of the Markit Manufacturing Purchasing Managers Index in the United States in August fell to 61.2, which was less than the expected 63. It was 63.4 in July.

The US economic data is weak, and the market's expectations of the Fed's rapid cancellation of loose money have been greatly weakened. The US dollar was under significant pressure on the 23rd, and its high level fell back. A weaker U.S. dollar offset the impact of rising yields, which boosted precious metal prices to a certain extent.

2. The situation in Afghanistan

According to sources, the UK will promote sanctions against the Taliban at the G7 summit. The United Kingdom and the United States imposed economic sanctions on Afghanistan and ceased aid, which may further complicate the increasingly clear situation in Afghanistan.

The risk aversion generated by geopolitical factors has also lifted the price of precious metals to a certain extent.

3. Overseas control of public health incidents

The delta variant continues to spread globally, and the overseas control of public health incidents is not satisfactory. The market is worried that the epidemic blockade measures will drag down economic growth. This worry can not only generate risk aversion, but also one of the considerations for the continuation of the monetary easing policy. .

Outlook

In the short term, precious metals have recently bottomed out and rebounded. Recently, bullish factors are still increasing. The market's expectations for precious metals prices have slightly changed, and volatility is expected to be the main trend. Recently, he focused on Powell's speech on the 27th on "economic prospects".

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