Price trend

According to the data from SunSirs, the average early price of silver market on November 3 was 4,585.67 RMB/kg, a daily drop of 0.74%, and up 0.49% from the average early price of spot market at the beginning of the month (November 1) of 4,567.33 RMB/kg; Compared with the early average price of spot market at the beginning of the year (January 1) of 4,770 RMB/kg, a decrease of 3.86%.

On November 3, the spot market price of gold was 391.89 RMB/g, down 0.11% on a daily basis, up 0.06% from the early average price of 392.11 RMB/g in the spot market at the beginning of the month (November 1); Compared with the early average price of 372.37 RMB/kg in the spot market at the beginning of the year (January 1), the increase was 5.24%.

In the long term, the trend of precious metal prices tends to be the same, with slightly different amplitudes.

Macro policy

Domestic policy

The central bank carried out a 7-day reverse repurchase operation of 7 billion RMB on the 3rd, and the bid winning interest rate was 2.00%, unchanged from the previous one. On November 3, 240 billion RMB of 7-day reverse repurchase expired, and a net withdrawal of 233 billion RMB was realized on that day.

International policy

On November 2 local time, the Federal Reserve of the United States announced that it would raise the target range of the federal funds interest rate by 75 basis points. This large-scale interest rate increase will enable the central bank's benchmark lending rate to reach a new target range of 3.75% to 4%. This is the highest federal funds rate since January 2008. The Federal Reserve has raised interest rates six times this year, with a cumulative rate increase of 375 basis points, which has been the largest cumulative rate increase of the Federal Reserve in more than 30 years.

The Central Bank of the United Arab Emirates announced on November 2 local time that it had decided to raise the benchmark interest rate by 75 basis points to 3.90%, effective from November 3. This decision was made after the Federal Reserve raised interest rates by 75 basis points. The Central Bank of the United Arab Emirates also decided to maintain the standing lending facility interest rate at 50 basis points above the benchmark interest rate. The basic interest rate is linked to the federal funds rate of the Federal Reserve, which indicates the overall position of the monetary policy of the United Arab Emirates.

The Saudi Central Bank also decided to raise the interest rate by 75 basis points to 4.5% and the interest rate of the reverse repurchase agreement by 75 basis points to 4.00%.

The Central Bank of the Philippines said that the Federal Reserve's interest rate increase supported the Central Bank of the Philippines to raise interest rates by 75 basis points at its meeting on November 17.

Market outlook

The Federal Reserve raised interest rates to curb the price of interest free precious metals. There is no expectation of the end of international interest rate increase in the short term, which to some extent suppresses the precious metal market. It is expected that in the short term, the price of precious metals will be dominated by weak sideways operation.

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