Gold in 2011 is expected to usher in the pattern of first inhibition

At the press conference of the “Evening Gold Market Annual Research Report” held by Jingyi Industry on March 28th, Gu Haipeng, senior certified gold analyst of the country and marketing director of Jingyi Industry Co., Ltd., believes that “it is extremely complex. In 2011, gold is expected to usher in the pattern of precipitous decline, seasonal fluctuations regaining the mainstream, and January, June and September are expected to form adjustment lows; in terms of prices, the shock range is maintained at US$1260-1630. The average price of gold will still be at a high of 1,420 dollars."

On the same day, Jingyi Metal Industry Co., Ltd. published the "Jingyi Gold Market Research Report" for the fourth consecutive year. The report specifically pointed out that the two-wave rally in February and June of 2010 and the two-wave adjustments in July and January 2011 were basically similar, reflecting that the price of gold has gradually freed itself from the seasonal characteristics of gold as a mere consumer product. What is more reflected is the investment power to buy gold hedge risk.

Statistics show that 2010 is the ninth year in a row to close the Yang Xian, the annual closing price of 1420.6 US dollars, the annual highest price of 1430.5 US dollars, the annual minimum price of 1044.2 US dollars and many other indicators have exceeded history. After the strong gold price broke through 1000 US dollars in 2009, gold finished the perfect closing with an increase of 29.57% and an average annual increase of 25.86%.

The report predicts that in the first half of 2011, the global economic complex situation will continue to take place in various countries. The economies of various countries will face development risks. Changes in the international investment environment will cause funds to be reconfigured. During this period, the price of gold will face the risk of adjustment; but it will enter the middle of the year. With the economic re-evaluation work being carried out in the United States and Europe, the economic trends are facing changes. The Obama administration's strategy of driving down the dollar exchange rate to stimulate U.S. exports will not be easily changed. In the event that some of the lighter members of the euro zone have successive sovereignty debt crises and have not been eradicated, it is still necessary to see whether the euro zone’s core countries will have any changes in 2011. The issue of concern; the return of China's guaranteed growth goal has re-created a relaxed environment for economic development. In the changes in the economic environment, gold is expected to usher in a pattern of precipitating.

Although the report is so optimistic, Liu Yuning, senior gold analyst of the report's chief editor and Jingyiye Co., Ltd., still said: “In the transition from consumption to investment, the accumulation of monetary system assessments has continued and the qualitative leap has not yet been achieved. The mutual growth of the two attributes of gold investment and jewelry consumption respectively play different roles in the price trend. It is wise to expect the gold selection to be consolidated in 2011, and the warming of jewelry demand will help solidify the bottom and re-enter the market.”