Financial news
Written by: Zhang Weilun
2020-01-06 19:23
Last updated: 2020-01-06 19:23With the death of a high-level Iranian Revolutionary Guard in the Iraqi capital Baghdad, the situation in the Middle East continued to heat up, triggering investors to deposit funds into gold as a hedge, spot gold today even hit $ 1,588 per ounce, a new high of more than 6 years. The yen, which is also a safe-haven asset, is also sought after by investors. It once rose above the 108 level today, a three-month high. Market participants believe that the price of gold can exceed $ 1,600 in the short term, but it will rise after the high level is settled.
Lu Churen, a senior independent foreign exchange and commodities analyst, pointed out that in addition to the rise in the price of gold in the Middle East, central banks in China and India and other countries have increased their holdings of gold, which is also the driving force for the rise in gold prices. However, the price of gold has accumulated a considerable increase and has been overbought. Therefore, after the price of gold exceeds $ 1,600, it will first retreat and then rise.
Silver has also been attracted by investors. Spot silver has seen a high of $ 18.5081 per ounce today. Lu Churen pointed out that the volatility of silver price was twice that of gold in the past, but in recent years, the trend has not been as good as before. I believe that it can only change with the trend of gold price. It is expected to test $ 18.74.
Lu Churen believed that the yen could rise above 107.6. (Visual China)
Yen can break 107.6
In addition to gold, the yen has recently become a target for investors, and today it has risen above the 108 level. Lu Churen pointed out that compared to other safe-haven assets, the yen's trend is relatively backward, and it does not rule out that the yen market can break through 107.6, even as high as around 106.5.
Tensions in the Middle East have also driven up oil prices, and oil stocks and oilfield services have also been attracted by investors. CNOOC (0883) and PetroChina (0857) rose 3.6% and 4%, respectively. For oil service stocks, CNOOC Oilfield Services (2883) reached a one-year high and closed at 12.88 yuan, up 2.9%.
Zhang Zhiwei appeals to sell oil stocks first
However, Zhang Zhiwei, co-director of Xincheng Securities, believes that there is no room for oil prices to rise, and further rises in oil prices will push up US inflation. US President Trump will not tolerate this situation. So he suggested that investors should first sell gluttony to oil stocks.
Zhang Zhiwei expects that there will be room for oil prices to rise before selling oil stocks. (Visual China)
Instead, Trump will not have much opinion on the rise in gold prices, so he believes that investors can continue to hold gold mining stocks.
Zhaojin Mining (1818) closed at 9.42 yuan, up 4.9%, China Gold (2099) closed at 7.4 yuan, up 0.7%, and SPDR Gold ETF (2840) closed at 1,151 yuan, up 1.9%.
Gold Gold Investment Gold ETF Oil Price Yen PetroChina CNOOC CNOOC Ltd.