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The market's optimistic expectations for the Federal Reserve's interest rate cuts support gold prices, with gold expected to rise for the fourth consecutive month. Comments from Federal Reserve officials and delayed economic data support the rate cuts, with swap traders anticipating an over 80% chance of a 25 basis point cut in December. Gold prices are close to $4,170 per ounce, with an increase of over 2% this week
Dongfang Caifu Securities believes that gold has entered its third round of rising cycle since 2019, with a cumulative increase of 219% over six years, but there is still room for growth compared to the previous two rounds. The rise in gold prices is supported by three attributes: in terms of monetary attributes, the U.S. dollar credit system is facing challenges; in terms of commodity attributes, central bank gold purchasing demand is expected to grow at an average annual rate of 44% from 2020 to 2024; in terms of financial attributes, the pricing framework for real interest rates has partially failed in a high-inflation environment. Geopolitical risks, growth in gold reserves, and changes in real interest rates have become the three key variables determining the future trend of gold prices
On Thursday, spot gold returned to the $4,000 mark, rising more than 2% during the day. Some U.S. gold stocks rebounded, with Newmont rising over 2.8%, Eagle Mining rising over 3%, and Kinross Gold and Barrick Mining rising over 2%
Multiple institutions analyze that the recent sharp decline in precious metal prices is due to a combination of factors, including the easing of international trade tensions, the weakening of the yen leading to a strengthening of the dollar, and investors taking profits. Although gold and silver prices are under pressure in the short term, the demand for gold investment remains strong in the medium to long term, and it is expected that international gold and silver prices will maintain an upward trend
The World Gold Council stated on October 21 that global physical gold ETFs recorded the largest single-month inflow in history in September, driving total inflows for the third quarter to a record $26 billion. As of the end of the third quarter, the total assets under management (AUM) of global gold ETFs increased to $472 billion, setting a new historical high. Among them, North American and European funds became the dominant forces, recording inflows of approximately $10.6 billion and approximately $4.4 billion in September, respectively
