International gold prices have returned to a thousand eight, and the new policies of major central banks in the world suggest that the goal has not been achieved

On Friday (November 5), international gold prices returned to the thousand-to-eight mark, because despite rising inflation risks, the Fed and the Bank of England kept interest rates unchanged, increasing the attractiveness of non-yielding gold and silver assets.

At GMT+8 16:26, spot gold rose 0.43% to US$1,79.87 per ounce; the main COMEX gold contract rose 0.42% to US$1801.1 per ounce; the US dollar index rose by 0.02% to 94.371.


Gold prices closed up more than 1.2% overnight. The Bank of England kept interest rates unchanged, and pinned the hope of adjusting its dovish policy on the expected relief of supply bottlenecks in the next few months, and the relief of inflationary pressure caused by these bottlenecks that officials believe. This has left many investors confused. They originally believed that the Bank of England would become the first major central bank to raise interest rates since the outbreak.

The Bank of England said in an announcement that “as supply disruptions ease, global demand rebalances, and energy prices stop rising”, inflation is “expected to recede over time” and may reach its peak in April next year. . In the announcement, the Bank of England vowed to set its sights on the "medium-term outlook for inflation" and ignore "may be temporary factors."

In a sense, this is to reiterate a core goal of monetary policy since the outbreak of the epidemic: to keep borrowing costs low for a long enough time to ensure that families and the national economy can survive the public health crisis. In view of the continuation of the new crown infection, the loss of jobs, and the uncertainty of when workers will be able to return more fully, this goal has not yet been achieved.

The day before, the Federal Reserve made a dovish decision, stating that it would start to reduce monthly bond purchases and plan to end bond purchases in 2022, but insisted on its long-standing view that high inflation will prove to be "temporary." "It may not be necessary to raise interest rates quickly.

The decision prompted the 10-year U.S. Treasury yield to fall to a new low of 1.506% since mid-October, further away from the more than one-year high of 1.702% set two weeks ago. Ultra-loose monetary policy has helped push gold soaring, and low interest rates have reduced the opportunity cost of holding non-yielding assets.

An ANZ Bank analyst stated in a report that given the Fed’s latest views and actual inflationary pressures, gold should find some support at its current level. “However, as the economic recovery progresses, we expect the price of gold to be in 2022. Fell back in the year."

Nicholas Frappell, global general manager of ABC Bullion, said: “Many investors’ interest is still focused on the stock market. Before the price of gold breaks upwards of $1,835, it may not be sufficiently attractive to investors.”

Investors' focus turned to the October non-agricultural employment report to be announced later in the day. The market predicts that the United States added 450,000 non-agricultural employment that month, an increase far exceeding the previous value of 194,000; the unemployment rate fell by 0.1 percentage point to 4.7%; the labor participation rate rose by 0.1 percentage point to 61.7%.