As an important investment product, gold’s price fluctuations have attracted much attention from investors. After three months of volatile adjustment, gold ushered in a strong rise again. On the 3rd, London spot gold and New York gold futures prices both broke through record highs, and New York gold futures stood above the $3,600 per ounce mark, which was the seventh consecutive trading day for international gold futures prices to rise. At the same time, the price of domestic gold jewelry continues to rise, and the price of gold jewelry has exceeded 1,000 yuan per gram. What exactly causes the strong rise in gold prices in this round? Where should ordinary investors and consumers go?
On September 3, the New York gold futures contract broke through $3,616.9 per ounce, standing above the $3,600 mark, setting a record high. What causes the international gold price to rise? Dong Ximiao, chief researcher of China Merchants Union and deputy director of Shanghai Financial and Development Laboratory, analyzed that this round of gold price rise is by no means accidental, and the Fed’s expectation of interest rate cuts is the “strong driving force” behind it.
Dong Ximiao: After the release of core inflation data in July, the market’s expectations for the Federal Reserve’s interest rate cut in September have increased significantly. Federal Reserve Chairman Powell recently released a signal of interest rate cuts, clearly stating that the monetary policy stance may need to be adjusted. For ordinary investors, the Federal Reserve’s interest rate cut means that the return on the US dollar asset is declining, and the US dollar index may also weaken, which enhances the attractiveness of gold as an asset allocation.
As early as early August, data released by the U.S. Bureau of Labor Statistics showed that the number of new non-agricultural jobs in the United States in July was 73,000, a slowdown in growth exceeded expectations. The labor market slowed sharply, with the unemployment rate of 4.2%; the data in June was significantly revised down from 147,000 to 14,000. Yu Song, a special lecturer at the China Gold Association and senior gold investment analyst, analyzed that since then, the expectation of the Federal Reserve’s interest rate cut has gradually become clear.
