Gold remains in a slight oscillation

The light trading before Christmas and the improved economic data of the United States kept gold in a slight oscillation. Last week, the international gold spot was highest at $1,641 and the lowest was $1,583/oz.

Last week, the data released by the US Department of Commerce on Friday showed that after adjusting for seasonal factors, the monthly rate of sales of new homes in November increased by 1.6%, an increase of 9.8% from the same period last year, and the annualized rate was 315,000. In addition, the US durable goods orders rose more than expected in November, data show that the United States November durable goods orders rose 3.8% monthly rate, is expected to rise 2.0% to 2069.9 billion US dollars, the former value was revised to flat, the initial value decreased by 0.5 %. The U.S. economic data is still quite strong, making risk assets also gain some improvement.

In Europe, last week the European Central Bank injected nearly 500 billion euros in funds into the financial system through LTRO operations. Although in the short term, it may improve the risk that European banks may also be faced with the risk of bankruptcy, but this does not prevent banks from being downgraded.

The author believes that gold is still dominated by shocks. After all, it is the light period of gold investment. As long as the European debt crisis does not continue to deteriorate, gold may go slightly higher after the shock. In February next year, Italy will have more than 6 trillion euros of debt due; in April, more than 2 trillion euros of debt will expire in Spain, and in July the scale of debt will reach 3 trillion euros. In the long run, the outbreak of the European debt crisis will eventually lead to a strong risk aversion and promote the gold market.

As of December 23, 2011, the world’s largest gold ETF**: US SPDR Gold Trust**’s gold ETF gold has significantly reduced its holdings by 13.31 tons and its holdings have been reduced to 1,254.57 tons.