El-Erian said: At present, the most likely situation is that the agreement will be released at the last moment, and the debt can also avoSemi-precious metal pricesid default, but the AAA-level highest credit rating is at stake. With the confrontation between the political parties of the world's largest economy, the global stock market may absorb a higher uncertainty risk premium, and the probability of the United States losing the highest rating of AAA has also increased.
Calculated at market prices, the amount of physical gold, oil, ore, rubber, grain and other commodities that can be purchased for the same US$1 trillion in foreign exchange reserves is far less than a decade ago. The over-issued currency will sooner or later make waves in the commodity market, and it will not evaporate silently. The amount of gold and commodities that can be purchased by foreign exchange reserves of more than US$3 trillion in 10 years is likely to be less than half of what it is now, or even less, even with interest.
According to Dealogic data, including senior unsecured bonds, bank loans, and asset-backed loans, the European banking industry issued a total of US$744 billion in bonds this year. The maturity debt is US$888.0 billion, and the funding gap is still as high as US$144 billion. .
The positive US economic data released on Friday (16th) triggered market speculation about the acceleration of the US economic recovery and the acceleration of the Fed's withdrawal of quantitative easing. Precious metals were under pressure to decline. Data information shows that London Gold opened at US$1,296.18 on the same day and hit a four-trading-day low of US$1287.63. But then protected by the risk aversion triggered by the situation in Ukraine, prices stopped falling and rebounded. As of the close, the decline narrowed to US$2.53 (0.2%) and closed at US$1,293.22. Spot silver opened at 19.50 US dollars, and then fell all the way down, as low as 19.25 US dollars, as of the close, at 19.47 US dollars, down 0.11 US dollars, or 0.56%.
The UK hopes that the G20 will reach an agreement on improving the IMF's use of funds, including the liberalization of lease funds through the sale of gold reserves, International Development Minister Douglas Alexander said. Among these measures, we hope to have an impact on this is to provide more and better funds to the IMF and the World Bank, including the profit from the sale of IMF gold reserves, Alexander's 20-nation summit held in London today Speaking of it. South Africa and other countries have launched discussions on whether the gold market can be used in a more commercial way for phased and appropriate sales.
Miguel Perez-Santalla, a commodity analyst at Heraeus Precious Metals Management in New York, said that it seems that the contagious effects of the European debt crisis panic have spread to commoditSemi-precious metal pricesy markets such as gold, and prices continue to be under pressure. (Thursday's performance) was a big crash.
In addition, due to the continuous growth of gold stocks in Asia, the center of gravity of the recycled gold market may shift eastward. The global share of gold jewellery consumption in India and India has increased from 28% in 2004 to 60% in 2014, which will lead to increasing local competition in Asia's recycled gold business.