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Hang Seng Index futures closed down 0.19% at 26,643 points in overnight trading, a discount of 6 points.On November 11th, JPMorgan Private Bank stated that the strong upward momentum in gold prices could push them above $5,000 per ounce next year, primarily driven by continued purchases by central banks in emerging market economies. Alex Wolf, Global Head of Macro and Fixed Income Strategy at the bank, pointed out that gold prices could reach $5,200 to $5,300 by the end of 2026, more than 25% higher than current trading levels. Global central bank gold purchases have been a key driver of the sharp rise in gold prices over the past two years. Policymakers seeking a store of value and asset diversification pushed gold prices to a record high of over $4,380 in October this year. Although prices have retreated somewhat in recent weeks, they are still up more than 50% year-to-date. Wolf stated that for many central banks, gold still represents a relatively small proportion of their foreign exchange reserves, especially in emerging market countries. He added, "We are still seeing them increasing their gold holdings, although the pace of purchases may slow due to rising prices."On November 11, Hamas spokesman Hazem Qasim stated on the 10th that Israel is deliberately expanding the "yellow line" area in northern Gaza, effectively altering the post-ceasefire border, and has failed to implement the previously agreed-upon ceasefire map. He described the recent Israeli military operations in several areas as a "systematic breach" of the ceasefire agreement. Qasim said Hamas, through the mediators, has requested heavy machinery to search for the bodies of Israeli detainees in the rubble, but continued Israeli restrictions are hindering the operation.U.S. Senate Republican Leader Thune: Im not sure if I can vote today.U.S. Senate Republican Leader Thune: (The voting process for the temporary funding bill) remains stalled.

Wharton Professor of Business School said: US stocks are at risk in the fourth quarter, bullish on gold!

Oct 26, 2021 10:57

U.S. stocks may not have a good time in the fourth quarter of this year. Last Friday, Wharton Finance Professor Jeremy Siegel, who is known for his active market forecasts, issued a warning about the market’s ability to respond to inflation. He believes that inflation will be a bigger problem than the Fed believes. Rising prices have brought serious risks. The Fed will face pressure to accelerate the reduction of bond purchases, and he believes that the market is not ready.



His cautious attitude is markedly different from his optimistic attitude in early January. In the "Trading Nation" program on January 4, he correctly predicted that the Dow Jones Industrial Average would reach 35,000 points in 2021, a 14% increase from the first opening this year. On August 16, the index reached a record high of 35631.19 points. Last Friday, the index closed at 34326.46 points.

He now believes that the biggest threat to Wall Street is that Fed Chairman Powell withdrew from loose monetary policy earlier than expected due to a sharp rise in inflation.

He pointed out: "We all know that many volatility in the stock market is related to the liquidity provided by the Federal Reserve. If the rate of cut is faster, it also means that interest rates will be raised faster. Both of these things are not good for the stock market. "

Siegel is particularly worried about the impact this will have on growth stocks, especially technology stocks. He believes that Nasdaq (Nasdaq), which is dominated by technology stocks, is currently only 5% away from its historical high, and may fall sharply, and the market will tilt towards value stocks.

He believes that this background bodes well for companies that have benefited from interest rate hikes, have pricing power, and pay dividends. In the context of inflation, underperforming utilities and consumer goods companies that are known for their dividends may see strong increases.

In addition, Siegel is also bullish on gold. He believes that as a hedge against inflation, gold has become relatively cheap, and pointed out that the popularity of Bitcoin is one reason.

Siegel said: "The market turned to Bitcoin, and I think they ignored gold. I remember that during the inflation of the 1970s, everyone switched to buying gold. Now in our digital world, investors are turning to Bitcoin. , And I think they ignored gold."

Siegel was not frightened by the rise in real estate prices. He said: "I don't think this is a bubble. Investors have already foreseen inflation to a certain extent... I think that mortgage interest rates will have to rise sharply to really hit the real estate market. Therefore, I think real estate is still A good asset worth having."



S&P 500 index daily chart

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