Price trend
The price of precious metal gold strengthened again on May 9th. According to the Commodity Market Analysis System of SunSirs, as of May 10, 2024, the spot market price of gold was 549.41 RMB/gram, an increase of 0.93% compared to the average market price of 544.36 RMB/gram on the first day after the holiday (May 6).
The trend of precious metal silver WAs similar to that of gold, and it had also rebounded after the holiday, with a stronger increase. According to the Commodity Market Analysis System of SunSirs, the average silver market price on May 10, 2024 was 7,340.67 RMB/kg, an increase of 4.61% compared to the average silver market price of 7,017 RMB/kg on the first day after the holiday (May 6).
The logic driven by market trends once again
1. The geopolitical tension in both directions continued, with Israel's advance into Rafah, the situation escalates, and the market's risk aversion strengthened.
2. The direction of the interest rate reduction cycle remained unchanged. The US non farm payroll data in April fell short of expectations, while other economic data showed a weakening of US inflation expectations and the Federal Reserve's biased stance, leading to a resurgence of interest rate reduction expectations in the market.
3. The net purchasing trend of central banks around the world remained unchanged, with the Bank of Korea announcing its purchase of gold in early May. The industry's production capacity utilization rate was around 70%, with sufficient supply and low downstream production. The intention to purchase raw materials was not high, and small orders were mainly following up on demand. New orders from enterprises were not successful, and the market atmosphere was average. Under the drag of supply and demand, the melamine market was operating under pressure.
Short term precious metal prices may fluctuate to be stronger
The previous game point was the contradiction between medium - and long-term trends and short-term super inflation. After a brief decline, the profit taking capital market weakened, and the market began to trade news of inflation and interest rate cuts with fluctuations. It is expected that precious metal prices may fluctuate to be stronger in the short term.
If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.