“Recently, in terms of weight, there are a lot of gold recycling. What impressed me is that a gold investor took 11.2kg to the gold recycling point of our mall a few days ago and sold it, with a total payment of more than 4.2 million yuan!” Dai chongye, manager of Guangzhou Dongbai business department, said.
Investors sold gold mainly due to the rise in gold prices.
On February 24, spot gold once stood at the $1970 / ounce mark, a new high in 18 months.
On February 25, after the sharp fluctuation of the previous trading day, the gold price tended to be stable.
As of press time, the spot gold price was US $1889.33/oz, down 0.78% from the opening price. However, the market generally expects that the gold price is expected to open an upward channel.
Then, under the influence of international tensions, global risk aversion is heating up. How should investors find safe haven assets to survive the market storm?
some people sold 11.2kg of gold and paid back more than 4 million. The rise in gold price led investors to sell
According to the reporter of Guangzhou Daily, recently, offline gold recycling places have suddenly become lively.
“On the 23rd, the flow of people in our offline gold stores was 30% more than usual, mainly because investors came to sell gold.”
Zhu Zhigang, vice president and chief gold analyst of Guangdong gold association and general manager of Guangzhou Jingxin Precious Metals Co., Ltd., told reporters that the customers coming are mainly divided into two categories: the first category is to sell the investment gold bars purchased before; The other is to sell gold jewelry at home, “but there are relatively more customers who sell gold bars.”
As a senior gold practitioner, Zhu Zhigang was deeply touched by the sudden rise of gold on February 24. “In the morning, the gold was only 388 yuan / g, but the highest was 396 yuan / g yesterday, and there was an interval of 8 yuan in a day, which is very rare!”
Zhu Zhigang continued that this also puts forward high requirements for investors. “You can’t think that the price difference of gold is so large in one day. If investors hesitate to sell, he is very worried about the sudden decline of gold and missed a good opportunity.”
Dai chongye, manager of Guangzhou Dongbai business department, said: “recently, there are many gold recoveries in terms of weight. What impresses me is that a gold investor brought 11.2kg to the gold recovery point of our shopping mall a few days ago, with a total payment of more than 4.2 million yuan!”
collective counterattack of European and American stock markets
Recently, in the stock market, European and American stock markets rose strongly, European stocks generally rose more than 3%, and the US stock index rose more than 800 points.
In terms of US stocks, the Dow closed up 834 points or 2.51% on the 25th, the largest increase since November 2020; The NASDAQ rose 1.64% and the S & P 500 index rose 2.24%. Large technology stocks generally closed higher, with apple, Google, Amazon, Tesla, NVIDIA and meta all rising more than 1%.
The Russian stock market also rebounded strongly after a historic decline. The Russian market capitalization weighted index (RTs) closed up more than 26% on the 25th, after falling nearly 40% the day before.
As of the closing of European stocks on the 25th, the European Stoxx 50 index rose 3.69%, the German DAX30 index rose 3.67%, the French CAC40 index rose 3.55% and the UK FTSE 100 index rose 3.91%.
how can investors find safe haven assets to survive the market storm?
Looking forward to the future, whether the safe haven asset gold can continue to rise has become the focus of the market.
Due to the high degree of uncertainty in global geopolitics, the future trend of gold assets is uncertain, and institutions have different views on the future trend of the gold sector.
Nanhua Futures Co.Ltd(603093) said that in the future, the price trend of precious metals mainly focuses on two aspects: first, the progress of the situation in Russia and Ukraine will continue to dominate the price of precious metals in the near future. If the situation eases or cools down and returns to the negotiation level, there will be a correction of precious metals. In the medium and long term, under the expectation that the U.S. economic growth is expected to slow down and the proportion of U.S. debt / GDP continues to rise, precious metals are expected to still perform strongly. If the situation in Russia and Ukraine eases, it may provide a better opportunity for more orders in the medium and long-term layout of precious metals. Goldman Sachs raised its gold price target to $2150 for the next 12 months. At the same time, it also raised its six-month forecast target to $2050 / ounce.
Citigroup said that with the opening of the Fed’s interest rate hike cycle, the prospect of precious metals will be more challenged in the long run. He was bearish on gold in the second half of this year and 2023, and predicted that gold would fall to US $1675 / oz.
Zhou Maohua, a macro researcher of the financial market department, believes that in the short term, the situation in Russia and Ukraine is escalating, risk aversion dominates the market, risky assets in the stock market are sold off, funds flow into safe haven assets such as gold and government bonds, and energy and commodity prices are higher.
Wang Delun, chief economist of Xingzheng asset management, analyzed and summarized the market performance after the occurrence of major geographical conflicts, and found that the growth and cyclical style were dominant in the short term, while the consumption performance was weak. With the passage of time, the consumption stabilized and the financial style was dominant.
Yang Delong, chief economist of Qianhai open source fund, pointed out that some high-quality leading stocks actually have limited room for decline. When there is external bad news, we can consider moderately and appropriately reducing positions for some companies with relatively poor A-share fundamentals or over valued companies, and for some companies that have fallen but can’t fall The high-quality leading stocks that are adjusted in place can adopt the strategy of sticking to it, and then wait for the return of value.
commodities become the best hedging tool?
“Many global investment institutions are worried that western countries may increase economic sanctions against Russia, triggering further tension between supply and demand of commodities, and have chased up commodities as a new risk hedging strategy.” Edward Moya, a market analyst at hedge fund OANDA, said. Although some hedge funds believe that this may be a short-term hedging behavior, more and more investment institutions intend to hold long positions in commodities for a long time as an important investment tool to hedge the escalation of geopolitical risks in the future.
A head of a Wall Street Multi Strategy hedge fund told reporters that at present, they are planning to over allocate long positions in commodities such as crude oil, aluminum and nickel in the next half year. The reason is that once the export of Russian crude oil, aluminum, nickel and other commodities is limited, it is difficult for the global market to reverse the tight supply and demand of these commodities in the short term.
In his view, as more and more investment institutions intend to buy up crude oil, aluminum, nickel and other commodities for a long time, the wall street market has great differences on the rhythm of the Fed’s interest rate hike in the future. Some asset management institutions believe that the escalation of geopolitical risks may lead to a sharp decline in global stock markets, and the Federal Reserve will have to slow down the pace of interest rate hike to stabilize market sentiment; However, most asset management institutions believe that in the face of a new round of inflationary pressure triggered by the warming of inflation transactions, the Federal Reserve may be forced to accelerate the pace of raising interest rates to promote the fall of prices.
\u3000\u3000 “However, whether the European and American central banks choose to slow down interest rate hikes or accelerate the pace of interest rate hikes, most asset management institutions still believe that buying up commodities is one of the best hedging investment strategies. Because compared with gold, traditional hedging investment varieties such as US bonds are vulnerable to monetary policy, resulting in large price fluctuations, while commodities have more certainty due to the tense relationship between supply and demand The rising trend of prices. In the current financial market with a sharp increase in uncertainty, the best hedging strategy is to find more deterministic investment opportunities. ” The head of the above Wall Street Multi Strategy hedge fund said bluntly.
