Standard Chartered Bank: Current price of gold has reached peak

Yesterday, Standard Chartered Bank Personal Banking Wealth Management Vice President Feng Bogong cloth of the second half of the forecast economic outlook: China's economic growth rate will slow down, GDP growth rate of 11.9% from the first quarter fell to 8% annual growth rate maintained at about 10%. Meanwhile, Feng Bo that the price of gold has reached a peak in the short term will not have a substantial rally.

China's economic growth slowed in the second half

Feng Bo that the economic slowdown in China early next year will be more obvious, when GDP may fall to below 8%.

Based primarily on the current tight real estate policy, another factor is added to reduce infrastructure construction projects. "Since April this year, the central greater efforts to control the property market, real estate agency unwilling to price to sell, real estate turnover decreased significantly." Concern on the outside end of the central control measures will ease the property market, Mr Bo said "unlikely" He expects prices will drop at the end of Tier Two to three percent. "With the economic slowdown, the outside world the pressure for RMB appreciation would ease." Feng Boyi, said the global economic recovery is slow, the second half of a double-dip recession risks remain, but not inevitable. Lower than expected U.S. economic recovery, the job market weakness, the Fed may not raise interest rates the third quarter: Europe affected by the debt crisis in 2011 before the rate hike may be almost zero.

There will be no short-term market rally

"From the end of last year, gold will rise in a channel, has reached 1,400 U.S. dollars / ounce, it has reached a peak." Feng Bo said.

Feng Bo that gold as a traditional hedge in the financial crisis has highlighted the unique effect, but for now, soon there will be no sharp rise in the gold market, the future does not appear 100 -200 point of growth, long-term price of gold will drop to 1,100 U.S. dollars / ounce.

Therefore, he does not recommend investors to intervene in the gold market at this time.

Hui Sun Post reporter muang met intern