EU summit close to gold price shock consolidation

With the advent of the EU summit, the gold market has been suppressed by fundamental news, but the market is still full of expectations for the EU peak on Friday, and gold has rebounded after falling. On Tuesday, the international gold spot opened at 1,722.94 US dollars per ounce, reaching a maximum of 1,732.82 U.S. dollars, with the lowest price falling to 1,701.86 U.S. dollars and ending at 1728.00 U.S. dollars.

From Monday, Standard & Poor's began to launch disasters on European countries and warned that the sovereign ratings of 15 European countries were downgraded. In addition, Standard & Poor's yesterday also included the European Financial Stability ** long-term AAA rating on the negative watch list. Although these news are not good for gold, the European Central Bank interest rate decision on Thursday and the EU summit on Friday are already in sight. Currently, the market generally expects the European Central Bank to have the possibility of lowering interest rates again and reducing the cost to stimulate the economy. So the gold market is still standing above $1,700.

At present, all countries in the world have begun to restart the pace of loose monetary policy. The Reserve Bank of Australia cut interest rates again by 25 basis points yesterday. Coupled with the United States’ call for QE3, European countries are also increasing their purchasing power for European debt. These undoubtedly laid a good foundation for the development of gold in the later period. The conflict between Syria and Iran is also heating up, oil prices are rising, and gold will also benefit.

As of December 07, 2011, the world’s largest gold ETF**: US SPDR Gold Trust**’s gold ETF gold holdings remained at 1,297.93 tons.