Guangfa Futures: Domestic silver prices see around 7300 yuan/kg

On April 8th, Jinshi Futures reported that after hitting a new high, bullish trading in gold is currently crowded. Technical indicators show that the market is already in an overbought state, and there may be a possibility of a short-term pullback. Pay attention to this week's US CPI and other inflation data. If the rebound exceeds expectations, it may hinder bullish trading, and investors can still seize the opportunity to buy on dips. In March 2024, China's State Administration of Foreign Exchange announced that its gold reserves had increased by 5 tons, reaching 2262.5 tons for a continuous 17 month increase. It can be seen that the increase in gold prices has decreased compared to previous months, and the rise in transaction costs is positively affecting bullish sentiment. Some investors may turn their attention to silver, which, as a shadow asset of gold, has performed relatively weakly in the recent upward trend of gold. However, driven by expectations of re inflation and geopolitical risks, industrial product prices have strong upward momentum. The international silver price has room for a rebound of 29 US dollars/ounce, while the domestic silver price is expected to be around 7300 yuan/kilogram.