简体中文
ภาษาไทย
繁體中文
Indonesia
Gold trading teaching in 2021: Review of gold price performance in 2020, is it suitable to invest in gold in 2021? How should gold be bought?
2022-03-23
2306
Gold price performance is a response to the interaction of various sectors of supply and demand,which in turn is influenced by the interaction of four main drivers.In this context,investment demand for gold is well supported as investors require effective hedging,as well as a low interest rate environment,although the latter may be affected by risk premia related to the speed of economic recovery and financial soundness.Based on the practical experience of the reciprocal market,the price performance of gold can be explained by the following four factors:
1)Economic expansion:Economic growth periods are often very favorable for gold jewelry,technology stocks,and long-term savings.
2)Risk and uncertainty:Market downturns usually boost investment demand for gold as a safe-haven asset.
3)Opportunity cost:Interest rates and relative currency strength can also affect investor attitudes toward gold.
4)Short-term momentum:capital flows,technical positions and price trends can also ignite or weaken the performance of gold prices.
Let's first review the performance of gold prices throughout 2020
There is no doubt that in the past year,the market has been pleasantly surprised by the arrival of the real"golden age".The international spot gold price has continued to rise since March 2020.After July,the price rose rapidly.In early August,it rose above US$2,000 per ounce for the first time in history,setting a new record of US$2,075.14 per ounce.The accumulated maximum increase during the year exceeded 40%.And finished 2020 with a respectable 25%gain.
Although since mid-August,international spot gold has experienced four consecutive months of downward adjustment,but still achieved an annual increase of nearly 25%,which is already the best annual performance in 10 years.
Even so,there are still some people who regret not being able to enter the venue,and some people lamenting that they left the venue too early.So,after a bumpy 2020,many are wondering:When is the best time to buy gold?
be honest,no one can accurately predict the trend of gold prices,but the mutual market always believes that gold investment is a long-term operation,and you must endure loneliness in the process.
In 2020,although the gold market is very good,many friends have made a profit.Of course,there are also many who lose money.The mutual market has summed up experience and found that those who lose money always start at a relatively high point,and when they sell,they are always relatively low.Commonly known as a typical pick-up man.
In the final analysis,I am still blindly speculating.I buy when it goes up for a few days,and I can’t sit still when it goes down for a few days,so I quickly sell it.And those who make money are just the opposite.They always start at a relatively low point,and when they sell,they are always at a relatively high point,which is a typical buy low and sell high.
It can be seen that even the"golden age"with the best market cannot be grasped by anyone.The key is to be patient,endure loneliness,not to get rich overnight,but to seek long-term success.
Analysis:What is the main driving force behind the surge in gold prices in 2020?
The surge in gold prices is not without reason.In fact,in 2020,the gold market will be faced with various macro-level driving forces and weak physical demand on the other,but neither is the main driving force for the surge in gold prices,but the substantial inflow of gold ETFs.
According to data from the World Gold Council,since December 2019,global gold ETF holdings have experienced net inflows for 11 consecutive months.As of the end of November 2020,the scale of global gold ETFs has increased by nearly 50%(holdings increased by 913 tons),and the total holdings reached 3,793 tons,or about US$215 billion,both hitting record highs.
That said,thanks to high risk,low interest rates and positive price momentum,gold is one of the best performing major assets in 2020.
According to statistics,as of December 31,2020,gold has outperformed most mainstream assets such as the S&P 500,emerging market stocks,global government bonds,and commodities.However,as the spot gold price has recovered from a high level,and the strong performance of the stock market has increased investors'risk appetite,the attractiveness of gold investment has decreased.In the last two months of 2020,gold ETFs continued to see net outflows,totaling 148.8 tons.
It can be seen that this is the truth for the layman to watch the excitement,and the expert to see the doorway.With the end of 2020,2021 is a new starting point.
Is 2021 a good year to invest in gold?
Entering 2021,the current performance of the gold market is still elusive.Can gold usher in a"golden era"again?
The mutual market believes that the trend of gold prices this year is mainly affected by three factors:
First,the impact of the epidemic on the price of gold,which is the most uncertain factor;
Second,geopolitics,including tensions in the Middle East and other regions will push up the price of gold;
The third is the uncertainty of the dollar trend.
So,how exactly should gold be bought for the better in 2021?
When investing in gold now,you must remember these 3 points:
1.Gold is a long-term investment
Gold is no better than the stock market.Stocks fluctuate greatly in the short term.Buying today and selling tomorrow can make a lot of money.However,gold is different.The short-term fluctuation of gold price is small,which is suitable for long-term investment.Therefore,you must be calm when buying gold,and you must have a mentality of"not seeking to get rich overnight,but seeking long-term success".
2,it is best not to buy gold jewelry
From an investment point of view,gold bars are better than gold jewelry.Gold jewelry is not cost-effective due to the complex process,high added value of products,and higher repurchase costs.Gold bars,on the other hand,have relatively fewer processes,lower repurchase costs,and are more worthy of investment.
3.Seizing the opportunity is crucial
Summarizing past experience,it can be found that the price of gold is most susceptible to policy and positive effects,especially the monetary and fiscal policies of the United States.Generally speaking,before the positive signs appear and the policy is officially implemented,the price of gold will have a significant increase.It can be seen that the first wave of increases before the official implementation of the policy is actually a good time to start.If you miss this wave,it may be another stage high.
Finally:Gold has investment value most of the time
In the current gold market,the epidemic continues to escalate,the U.S.economy has contracted the most since World War II,the dollar has stopped falling and rebounded,and the competition between long and short positions is fierce.Under the long-short competition,the short-term trend of gold prices is not clear,and the market trading risks are increasing.
The gold market in 2021 is not as usual.Although there are constant fluctuations,the bullish trend is still there.Although the gold price has dropped a wave at the beginning of the new year,the follow-up is still worth looking forward to.
The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.
CM Trade
As a world leading financial trading platform, CMtrade Provides comprehensive one-stop trading services and opportunities for traders.
[Products]
The platform provides over 32 kinds of popular financial products such as forex, precious metals, crude oil, indices, cryptocurrencies and more.
[System]
2 top trading systems CM Trade MT4 / CM Trade APP, powerful and easy to operate
[Service]
Comprehensive market news, professional market analysis, 7*24 hours online customer service
[Advantage]
Low cost, high leverage, flexible one-stop all day two-way trading.
[Authority]
Licensed and strictly regulated by authorities. Traders deposits are independently kept by the bank. Fast deposit and withdrawal. Fair, efficient and transparent trading environment.
Follow us to learn more
Free AccessDaily Trading Strategy
Download Now
CM Trade Mobile Application
Economics Calendar
MoreYou May Also Like
