On the evening of September 7, one-year gold futures on the COMEX Division of the New York Mercantile Exchange rose to six-month high, ending at 1006.7 U.S. dollars per ounce and exceeding 1,000 U.S. dollars for the second time this year. On September 8, the prices of all transacted gold varieties listed on the Shanghai Gold Exchange (SGE) continued to rise and set a new record in nearly a year. AU (T+D) closed at 220.2 yuan per gram, up 2.13 yuan per gram over the pervious trading day. Meanwhile, China's domestic gold jewelry sellers also announced that they will raise prices soon.
Gold analysts said that the price of gold exceeding 1,000 U.S dollars is mainly due to concerns in the market about a weak dollar and possible future inflation. Compared to before this rise seems more “enduring” however, and gold prices are not rapidly fluctuating. Gold analyst Feng Chun said that the price of gold will continue to rise following a short-term drop-off and is very likely to exceed the record high of 1,032 U.S. dollars per ounce. Tao Xingyi, CEO of Jinding Gold Investment Company, believes that this is the “explosive point” of a new bull market for gold prices.
The price of gold is estimated to rise in the next two days, according to Jin Lili, the manager of Xingbaixuan gold and jewelry store. Li Xiaodong, general manager of China Gold's flagship store, said that if the price of AU9999 standard gold bullion stays at about 220 yuan per gram, it is reasonable to raise gold jewelry prices.
Due to continuous rises in gold prices recently, investors have begun to seek profit by buying back gold bars. Li said that his store bought back 70 to 100 kg of gold every day this week, significantly more than the usual daily average of 10 kg.
By People's Daily Online
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