Lehman Brothers filed for bankruptcy protection in late September, Merrill Lynch was acquired, and United States International Group (AIG) events such as the troubled succession broke out, United States sharp volatility in financial markets, the subprime mortgage crisis has quietly evolved into financial crisis.
In the beginning of the financial crisis hit, United States stock market battered, fell below the long-term consolidation platform; dollars from above the two-week depth callback; Meanwhile, Haven demand driven gold prices rose for two consecutive days. Subsequently,government grants for small business the United States Government introduced a plan to rescue AIG Company, experienced after some twists, United States Congress passed the 700 billion financial rescue program, central grants for small business owners banks have taken measures to cut interest rates. Favorable policies under the frequently published, financial market sentiment gradually stabilized dollar after a period of adjustment to return stronger, gold prices fell sharply after the platform consolidation.
Citigroup is on grants for starting a small business the verge of bankruptcy, coming second wave of financial crisis hit, financial markets appear again when federal grants for small business the financial crisis occurred for the first time--the phenomenon of stock market and the dollar fell, gold rose. In this case, United States of emergency the Government introduced similar to the last rescue measures. United States Treasury announced on November 23, to invest $ 20 billion the struggling Citigroup, and take other measures to help it out of trouble, will work with the Federal Deposit Insurance Corporation as Citi $ 306 billion loan and security guarantees.free small business grants United States Federal Reserve Board announced a total of 800 billion dollars, designed to boost consumer credit and mortgage-backed securities market of the new programme, support to an unprecedented increase in the credit markets.
Also, world range within of cuts climax again comes, people s Bank of China first announced downward financial institutions a years period RMB save loan benchmark interest rate all 1.08%, other period grade save loan benchmark interest rate for corresponding adjustment; Shang Thursday afternoon, Sweden Central Bank will its official borrowing interest rate downward has record of 175 a basis points; several hours Hou, European Central Bank (ECB) announced will main policy interest rate downward 75 a basis points, for has always maximum cuts range; while, United Kingdom Central Bank (BOE) is will small business grants for women interest rate downward 100 a basis points, to 2%, for the line small business grants 1694 created yilai of minimum level. These positive policies come again to the immediate effects, market confidence improved, peoples gradually stabilized, the stock market started bounced, gradually began strong, gold prices have fallen.
United States Department of labor announced on Friday, November non-farm employment decline of 533,000 people, higher than expected fall, for the 11th consecutive month of decline. United States plunge in non-agricultural employment indicates the United States exacerbated the recession. In the background of the continuing deterioration of the global economy, will gradually decline in consumer demand for gold, the other party, turmoil in small business grants financial markets and increased speculative demand for gold, gold trend is the result of interaction between these two forces after the offset. Slow reduction of the consumption government grants for small business demand and triggered speculative demand instant form the trend theme of today s gold, gold in the general trend of decline will be accompanied by short-term rally event occurred from time to time.
This period of dollars not including is the price of gold currency and compete with Golden haven on the diversion of funds to form a relationship. Market deleveraging and the lack of liquidity of speculative capital in the long term prefer to the dollar, while the financial crisis erupted suddenly fuelled fears, resulting in a sharp rise in the gold degree of preference in the short term, thus amplifying the dollar decline caused prices of gold.
At present, the mechanism did not affect the fundamentals for gold movements and great changes, so that gold s future is very likely a recurrence of the early period of the financial crisis – experience a period of consolidation, after digestion and fears in the market, gold prices will continue to ease, may once again test the $ 700 mark, and sudden events occur at the outbreak of the crisis in the near term rally.
