spot gold prices rose, yesterday hit a record $ 1,588.90 an ounce

U.S. Federal Reserve (Fed) may take the third round of the quantitative easing policy (QE3), plus the euro area credit crisis worsened, fear spread to Italy and Spain. U.S. and European economic and political issues of assets to strengthen the attractiveness of gold as a hedge, spot gold prices rose for seven consecutive days, yesterday hit a record $ 1,588.90 an ounce. HSBC Gold and Mining fund manager Xiaoruo Mei said that as the heart of the market maintain avoiding fear, investors' distrust of mature countries jumped rapidly, hedge funds have already actively seeking another channel, the gold in this environment to become biggest beneficiaries.


Xiao Ruomei that functions to diversify in recent years gold, foreign exchange reserves by central banks has not only become an important asset, is also satisfied that the core legal body subject, when the market risk awareness, although short-term dollar strength due to a temporary safe-haven demand, but gold has strong demand side, and the dollar weaken the long-term trend has not changed, will support the gold price to stay high.

Also, according to UBS estimates, the spot price of gold this year space of 6%, but under the same expectations, corporate earnings growth will be up to 56% in gold as the weighted average market capitalization is estimated up space about 33%.