Why has gold prices risen again?

There is only one reason: the U.S. financial market could explode at any time, and capital needs to seek refuge.

Last week, the price of gold broke through $2,600 per ounce, and the domestic jewelry gold price also exceeded 760 yuan.

While this is astonishing, we must also pay attention to the fact that once capital flees from the U.S., it may flow into the Chinese market, presenting a great opportunity for the Chinese yuan, but at the same time we need to be wary of two huge risks.

The U.S. stock market has shown a trend of falling first and then rising, with obvious signs of support.

However, Warren Buffett has significantly reduced his holdings in Apple and Bank of America stocks, isn't this a clear signal?

The U.S. has been promoting the influence of AI globally, actually hoping to drive the rise of the U.S. stock market through AI.

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However, this round of the U.S. stock market's surge has not been accompanied by an increase in total corporate profits.

At the same time, U.S. employment data and commercial real estate rental rates are declining, indicating that the U.S. economy is facing problems.

The collapse of the U.S. stock market is now just a straw away.

The situation with U.S. debt is even worse, with the latest data showing that the total U.S. debt is $35.35 trillion.

Now, the annual interest expenditure of U.S. debt has exceeded 1 trillion, and it is expected that the interest for the next fiscal year will reach 1.4 trillion.

In addition, the U.S. is about to cut interest rates, and the risk of U.S. dollar assets is increasing.

Everyone will definitely sell the dollar and increase holdings of other currencies.

Therefore, the opportunity for the Chinese yuan has come.

Last month, the Chinese yuan rose by 1,300 basis points in a single month.

In the next period, the Chinese yuan will definitely continue to rise, and it is not a problem to break through the 7.0 mark.

The rapid rise of the yuan will drive a large number of companies to exchange currency, and a large amount of foreign currency will be exchanged for the yuan, further accelerating the appreciation of the yuan.

The appreciation and depreciation of currency will have an impact.

Depreciation is beneficial to exports and not beneficial to imports; appreciation is beneficial to imports and not beneficial to exports.

In addition to the impact on trade, we also need to pay attention to the large influx of capital into China, causing fluctuations in the financial market.

If these funds, like those that flooded into the U.S. a few years ago, only invested in the stock market or real estate, they would definitely push up the stock prices and housing prices in our country, and the funds would also be easily sold and outflowed in the future.

At the same time, we also need to pay attention to the possibility that these funds may not enter our stock and real estate markets, but instead enter our bond market in large amounts.

The above two major risks need our vigilance, after all, this is happening in the U.S. Don't look at the U.S. has introduced a large amount of funds through interest rate hikes, but in fact, these funds are speculative in nature, seeing the high interest rates in the U.S., seeing the rise of the U.S. stock market, seeing the appreciation of the dollar, these funds have entered the U.S.

But because these funds are in the financial market, not in the real economy, so once the U.S. cuts interest rates, these funds can quickly flow out by selling.

So what should we do?

In fact, our country has already started to lay out, to prevent the occurrence of accidents.

A few days ago, the country passed the latest list of foreign investment, reducing the content of the negative list, in order to guide funds into our manufacturing industry, into our real economy.

On the other hand, in recent months, we have been regulating the bond market, which is also to prevent the blind rise of bond prices.

With these early layouts, I believe that foreign capital will flow into our real economy in an orderly manner, which is the biggest benefit for our economy and the Chinese yuan.