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Pakistans Foreign Minister: Like the Swiss Foreign Minister, Pakistan hopes that the efforts of the United States and Iran will promote regional peace and stability.On June 13, European Central Bank Governing Council member and Bundesbank President Jean-Claude Nagel stated in an interview with German radio that even if the war with Iran ends quickly, prices may remain high for a longer period. Nagel said, "We may not even be able to return to the data levels we were based on before the conflict, because supply chains have clearly changed, and risk premiums may have increased." He was referring to the premiums that might be required for transporting goods through the Strait of Hormuz. Nagel stated, "I almost doubt we will ever return to the state before this regional conflict." The world "may continue to be affected by uncertainties and changes beyond the conflict." He indicated that interest rate hikes in the short term would make "refinancing" more expensive. "But in the long run, by clearly defining price stability as part of (economic health), we are making the greatest contribution to the economy."On June 13, the Argentine Ministry of Health announced that no rodents carrying the hantavirus had been found in Mendoza Province in western Argentina. From June 8 to 12, a team of experts from the Carlos Malfurion Institute of the National Institute of Laboratories and Health of Argentina and the U.S. Centers for Disease Control and Prevention conducted a hantavirus investigation in Mendoza Province. The team set traps to capture rodents such as the long-tailed dwarf rice rat to confirm the spread of the hantavirus in the area. The Argentine Ministry of Health stated in its report released on June 12 that no rodents carrying the hantavirus were found.Market news: Indias pollution regulator has found that Tata Groups iPhone component factory has contaminated groundwater in nearby farmland.Market news: Irans Chief Justice stated that the confrontation between Tehran and the United States and its allies will not end, and warned people not to trust Washington on the occasion of the 12-day war anniversary.

The investment bank's words: Central banks cannot withdraw from unorthodox monetary policy, and the price of gold will rise to $5,500!

Oct 26, 2021 10:58

The Fed may plan to reduce the size of monthly bond purchases before the end of the year, which continues to put pressure on gold, which is still trading at around US$1,760 per ounce. However, Jefferies Group believes that in the long run, gold prices will continue to rise by thousands of dollars.



In a report released on Tuesday, Jefferies stated that gold and Bitcoin are still essential hedging tools because the threat of stagflation (a low-growth, high-inflation environment) continues to grow.

Although the market is still struggling recently, Jefferies analysts said they insisted on their long-term forecast of gold prices rising to $5,500 . However, they also acknowledged that gold will remain vulnerable to tightening concerns in the short term.

Jefferies is still bullish on gold because central banks have found that it is easier to implement unorthodox monetary policy than to withdraw from monetary policy.

Jefferies analysts said: “G7 central banks, including the most important Fed, will not be able to withdraw from unconventional monetary policy in a benign way, and will eventually continue to work on the expansion of the central bank’s balance sheet in some form. These The policy will make those central banks that pursue unconventional monetary policies increasingly lose their credibility and threaten the stability and integrity of the current legal tender system."

In addition to gold, the company also believes that with the devaluation of fiat currencies, the price of Bitcoin is likely to rise . The company's global portfolio of long-term global investors in U.S. dollars holds 5% of cryptocurrencies.

These analysts said: "The reason for the introduction of Bitcoin is that with the increasing evidence of the G7 currency devaluation policy, Bitcoin is clearly a legitimate choice to avoid risk capital seeking a store of value. It should be emphasized again. , Investments in gold and bitcoin are seen as insurance measures, not short-term transactions. This is a long-term investment portfolio that seeks to balance long-term risks and opportunities in the current global context."



Spot gold daily chart

GMT+8 At 9:08 on October 6, spot gold was quoted at US$1758.52 per ounce.

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