Gold Reaches New All-Time High

Gold Reaches New All-Time High: Gold prices significantly increased during Monday’s trading session,
continuing their gains for the third consecutive session.
The Gold rose by over $10, contributing to a new record level for the second time.
Despite the rebound in U.S. Treasury yields and the rise of the U.S. dollar, gold continued to strengthen,
reflecting its appeal as a haven for investors amidst economic tensions.

 

Content

Gold  

People’s Bank of China

 

 

 

 

Gold Reaches New All-Time High

Gold prices significantly increased during Monday’s trading session, continuing their gains for the third consecutive session.
The Gold rose by over $10, contributing to a new record level for the second time.
Despite the rebound in U.S. Treasury yields and the rise of the U.S. dollar, gold continued to strengthen,
reflecting its appeal as a haven for investors amidst economic tensions. 

In trading details, spot gold prices rose by 0.45% to reach $2,733.84 per ounce,
while December gold futures increased by 0.60% to $2,746.50 per ounce.
This strong performance comes amid expectations of continued demand for safe-haven assets,
especially with growing concerns about a global economic slowdown and inflationary pressures. 

This increase in gold prices demonstrates the precious metal’s resilience in the face
of global economic pressures as investors continue to turn to gold as a hedge against potential market volatility.

 

 

 

People’s Bank of China Lowers Lending Rates

The People’s Bank of China announced a reduction in its central lending rates,
including the benchmark mortgage loan rate, to stimulate China’s slowing economy and support the real estate sector.
This decision followed statements by the bank’s governor, Pan Gongsheng, during a financial conference last week.

In the bank’s monthly meeting on Monday, the one-year lending rate
used as a reference for commercial and consumer loans—was cut by 25 basis points (0.25%) to 3.10%.
The five-year lending rate, the benchmark for mortgage loans, was also reduced by the same amount to 3.6% from 3.85%.

This marks the first time since July that China’s central bank has lowered these rates.
The move is part of a monetary stimulus plan announced at the end of September.
The plan will support the struggling real estate sector and the broader Chinese economy.

However, Shane Oliver, Chief Economist at AMP, noted that China’s reduction
in borrowing costs alone would not stimulate the economy,
explaining that the core issue is weak demand for funds,
which requires additional fiscal measures to support economic recovery.

 

Gold Reaches New All-Time High

The real estate sector in China receives quarter-dollar support

The real estate sector in China receives quarter-dollar support:
the new home sales market witnessed throughout the past month by 34.2% on an annual basis  

 

Topics

Strengthening the Chinese economy

Support steps

Agricultural Bank of China

 

 

Strengthening the Chinese Economy

Chinese President Xi Jinping provided economic support to extricate the real estate sector from the crisis,
which represents pressure on growth in the appropriate sector of the Chinese economy,
an attempt to revive a sector that represents 20% to 25% of the Chinese gross domestic product,
as that percentage also includes the real estate market and represents the demands of the sector.
Real estate of the total steel production in China accounts for 30% to 35% of the total steel production.

 

Support steps

Chinese banks provide the majority of the support to support the real estate sector
in providing support estimated at 60 billion yuan ($8 billion),
as it is directed to support the real estate banks and the real estate sector,
which is witnessing the worst year ever,
and investors’ opinions indicate that the current support may only witness and succeed.
It is not enough to revive the real estate sector.

 

Agricultural Bank of China.

The “Agricultural Bank of China” agreed to provide the equivalent of $40 billion
to support Yuan Bank’s approved real estate projects listed on Ryan, including 50 companies.
This was stated in a statement by the bank on Monday,
and the “China Construction” Company also announced the provision of $3 billion to Yuan One Bank.
It is ready to provide 20 billion to support struggling companies in
handing over their units and approving them in the white report,
as confirmed by local reports, “Industrial Industrial and Commercial of China”
and “Bank of China” to provide support for some projects on them,
but there were no statements about the value provided.

However, the Chinese authorities helped stem the heat in this sector,
which represents almost a quarter of the GDP, and the new home sales market witnessed
throughout the past month by 34.2% on an annual basis.

 

The real estate sector in China receives quarter-dollar support