Spot price trends of precious metals

The average price of silver in the early trading on December 24 was 4,785 yuan/kg, which was an increase of 0.99% compared to the average early price of 4738 yuan/kg in the spot market on December 17, which was an increase of 0.99%; compared with the average early-day price of 4,653 yuan/kg in the spot market at the beginning of December (12.1) Kg, an increase of 2.84%; compared with the beginning of the year (01.01) silver spot price of 5550 yuan / kg, a decrease of 13.78%.

The spot market price of gold on December 24 was 372.58 yuan/gram, which was an increase of 0.80% from the spot market price of 369.63 yuan/gram on December 17, which was an increase of 1.68 yuan compared with the early December (12.1) spot market price in early trading. %; compared with the beginning of the year (01.01), the spot price of gold was 392.70 yuan/g, down 5.12%.

A list of the price trends of precious metals, gold and silver in the past year

The precious metals gold and silver have relatively good convergence, and the price of silver has a larger amplitude, and the direction is basically the same. After the recent price drop, the price of silver consolidated at a low level and began to repair.

Domestic macro policy factors

The People's Bank of China conducted a 7-day reverse repo operation of 10 billion yuan today. The winning bid rate was 2.2%, which was the same as the previous time. Another 14-day reverse repo operation was carried out at 10 billion yuan. The winning interest rate was 2.35%, which was the same as the previous time. Today, another 10 billion yuan of reverse repurchase expires, which is a 7-day period.

November US data

The overall PCE price index of the United States in November rose 5.7% year-on-year, the same as 5.7%, the highest level since June 1982; the core PCE price index of the United States in November rose 4.7% year-on-year, higher than the expected 4.5%, a refresh since 1989 new highs.

From the United States to December 18, the number of initial claims for unemployment benefits was 205,000, which was in line with expectations and was basically the same as the previous week’s 206,000.

The sales of new homes in the United States in November increased by 12.4% month-on-month, reaching an annualized total of 744,000 households. Although not as good as the expected 770,000 households, it was also the highest level since April this year. At the same time, the final value of the University of Michigan Consumer Confidence Index released in December in the United States recorded 70.6, slightly higher than the expected 70.4.

Recent news

1. Biden's fiscal stimulus plan vote was postponed, and concerns about slowing economic growth have risen, and the overall precious metals are still in a fluctuating trend.

2. The Bank of England is expected to increase interest rates.

Precious metals' recent long-short logic

Recently, with the expected landing of TAPER that suppressed the price of gold, the Federal Reserve FOMC meeting announced the acceleration of debt reduction. After the bottom of the precious metals, the precious metals rebounded quickly. The precious metals are supported by risk aversion and "boots landing" in the short term. Although the Bank of England’s interest rate hike expectations have strengthened and the US dollar index has fallen, overall, the price of precious metals has rebounded slightly.

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