Original title: Credit Suisse said that due to low or negative bond yields and countries reducing investment in the US dollar, central banks vigorously bought gold, and gold performed well in 2019 Source: Huitong.com

Credit Suisse said that since bond yields are low or negative, and countries have reduced investment in the US dollar one after another, central banks have vigorously bought gold, and gold performed well in 2019;

① Currently, global bond yields of more than 10 trillion US dollars are negative. Low/negative yields support the price of gold. As the opportunity cost of holding gold decreases, gold has become a more attractive safe-haven asset;

② Central banks have been net buyers of gold for 10 consecutive years, but the gold holdings of central banks in Asian countries are still very low. This may mean that China and other countries will continue to switch their holdings of US bonds to gold;

③ Meanwhile, in the mining sector, analysts said they expect the best performing gold stocks in 2020 to be companies that can generate substantial free cash flow (FCF) at current gold prices and return capital to shareholders through increased dividends and repurchases. Credit Suisse said investors have become wary of companies trying to achieve growth through acquisitions;

④ Furthermore, with the current price of gold, the focus appears to be on controlling costs, increasing profits, and collecting cash flow for shareholders to satisfy existing shareholders and attract other investors