Price trend of spot precious metals

According to the data monitoring of business agency, the average spot price of domestic gold on the 31st was 342.54 yuan / g, up 3.58% compared with 330.70 yuan / G on the 1st day, and up 20.57% compared with 284.10 yuan / g at the beginning of the year (01.01).

On the 31st, the spot price of domestic silver was 4376.33 yuan / kg, up 7.07% compared with 4087.33 yuan / kg on the 1st, and up 20.97% compared with 3617.67 yuan / kg at the beginning of the year (01.01).

Main factors influencing the rise of precious metals on 31st

1. Geopolitical factors: on the night of December 29 local time, the U.S. military launched air strikes against a militia organization, people’s mobilization organization, active in Iraq and Syria. Rising tensions in the Middle East have triggered market risk aversion.

2. In an environment where more than 70% of national sovereign bonds trade at negative real interest rates, the opportunity cost of holding gold has decreased significantly.