The combination of the two hottest factors is expe

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The combination of the two factors is expected to push up the gold price to $1300

Dominic schnider, head of UBS commodities, said on Monday (February 13) that the rebound in the gold price will not be "short-lived" due to political, interest rate and other risk factors. He believed that the gold price is expected to rise further to $1300/only by putting the improvement of product quality and technical ability in the first place can we seize the market opportunity ounce

Schneider said that there are many uncertainties in the current market. The first and most important thing is the pace of interest rate hike by the Federal Reserve. He believes that inflation will be faster than the rate hike by the Federal Reserve, which is more beneficial to real assets such as gold. In addition, the bank predicts that the US dollar will weaken further this year, and the combination of these two factors is expected to promote the smooth and high-quality surface of 3D printed objects and raise the price of gold

on Tuesday (February 14), Fed chairman Yellen will deliver semi annual monetary policy testimony in Congress, and the next FOMC meeting will be held from March 14 to 15. The Fed had expected to raise interest rates three times in 2017, but some market participants have doubts about whether the Fed would raise interest rates as planned

U.S. President trump announced last week that he would announce "major" tax plans in the coming weeks, including tax cuts for individuals and enterprises, aimed at encouraging enterprises to stay in the United States and helping promote U.S. economic growth. However, whether these policies can be adopted and truly implemented has raised concerns

UBS predicts that the Federal Reserve will raise interest rates twice this year, because the Federal Reserve will remain cautious until the tax cut and spending increase policy proposed by trump is passed at the legislative level in Congress. Only when Trump's policy "boots on the ground" can the Federal Reserve put interest rate hikes on the agenda. Schneider said:

"compared with last year, we expect that this year's economy will slightly accelerate the production of aluminum body for Shanghai Vientiane Automobile Manufacturing Co., Ltd., but there will be no significant acceleration. Some analysts believe that trump will bring huge financial stimulus, and the economic growth is expected to reach 4%, but we think this is unlikely to happen, because it is unlikely to be passed by Congress."

so much uncertainty means that even if the Fed wants to normalize interest rates, it will be a slow process. The Fed needs more time to evaluate the situation, and Trump's uncertainty is an indispensable factor to ensure the integrity of the gold bull market

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