Fitch Ratings Causes New Round of Decline in Gold Price

As a result of yesterday's Thanksgiving holiday in the United States, today's Asian gold price fluctuated slightly in early morning trading. The opening price was 1,694.55 US dollars per ounce, the highest price was 1,696.49 US dollars per ounce, and the lowest was 1,690.70 US dollars per ounce, which was reportedly 1,690.02 US dollars per ounce. The international silver spot opening price is 31.75 US dollars / ounce, the highest 31.85 US dollars / ounce, the lowest 31.58 US dollars / ounce, is reported to 31.64 US dollars / ounce. Shanghai Gold Exchange AU T+D closed at 347.85 yuan/g in early trading today, and AG T+D closed at 6,750 yuan/kg. The US dollar index opened at 79.04 today, with a minimum of 79.00 and a maximum of 79.29, now at 79.25.

From the fundamental analysis:

Fitch International Credit Rating Co., Ltd. frequently takes European national debt ratings, Portuguese bonds have become "junk bonds", Portuguese long-term foreign currency and local currency issuer default rating (IDR) downgraded from "BBB-" to "BB +", short-term IDR from " F3" is lowered to "B". This once-ordained bond rating was once again pushed to the cusp, which undoubtedly sprinkled salt on the already scarred euro zone wounds.

The Hungarian government is looking for new solutions to prevent its debt from being downgraded once again. Hungary said on Thursday that it is seeking new aid agreements with the EU and the IMF and Other international parties. Hope and "very strict conditions The "2008 aid case was different; after the consultation plan was announced, the international rating agency Standard & Poor's said that it may postpone its decision to lower its rating to February 2012. The Hungarian government spoke at a press conference that the clear model of the agreement will be decided in negotiations with the IMF, but did not disclose the likely size of Hungary's hope for assistance.

The euro may continue to depreciate against the U.S. dollar because the European Central Bank still has the expectation of a rate cut, and JPMorgan said that with the deterioration of the European economy and the increasingly serious debt problems, the European Central Bank is likely to cut interest rates to 0.5 by June 2012 next year. Level, the current euro interest rate is 1.25%.

Eurozone government officials revealed that in view of the rapidly deteriorating market conditions in the past month, it was hoped that the 440 billion euros EFSF will expand to 1 trillion euros, but now it seems that it can only provide 500 billion euros. At present, there are only 250 billion euros of funds available for EFSF, which means that 4 times of leveraged operations are required. If Italy and Spain apply for assistance, the total amount of aid may reach 1 trillion euros. The finance ministers of the euro area countries promised to complete the expansion of the European Financial Stability Index (EFSF) from 440 billion euros to 1 trillion in December by reducing the borrowing costs of troubled countries or creating special investment vehicles.

From the technical analysis:

The continuous depreciation of the euro caused the US dollar index to keep rising, and at the same time it also restricted the rising trend of international gold prices. From today's K-line chart analysis, the current international gold price has stood above the 5-day moving average and the 5-day moving average is at the 1690 line. The next breakthrough is to see the location near 1680. If you stand firm on the 5-day moving average, look at the position near 1717. The KDJ indicator has the possibility of a gold fork at any time in the low zone. Although the MACD indicator is decreasing, the fast line has been brought under the 0 axis. Once the slow line is also brought under the 0 axis, the international gold price may be A wave of new declines ushered in. The spot price of international silver is currently analyzed from the daily K-line chart and is still in a weak state below the 5-day moving average. The upper 5-day moving average is at 31.90.