During the Asia‑Pacific trading session on August 24, spot international gold hovered near USD 4,618 per troy ounce, extending its recent rally and hitting a three‑month high. Gold posted three consecutive weekly gains, with its monthly increase approaching 13.8 percent. Weakening US dollar index, persistent central‑bank gold purchases worldwide, and rising geopolitical risk‑aversion sentiment collectively drive bullish momentum for precious metals.
From a macroeconomic perspective, markets are pricing in expectations for Federal Reserve interest‑rate cuts. Selected United States economic indicators show marginal softening. Most traders believe the Federal Reserve has almost no room for further rate hikes. Treasury yields have retreated from elevated levels, reducing the appeal of dollar‑denominated assets and benefiting gold priced in US currency. Besides, central banks across numerous countries keep expanding gold reserves. Ongoing de‑dollarization‑oriented allocation demands provide core long‑term support for gold valuations. Geopolitical uncertainties in the Middle East and shipping disruptions around the Strait of Hormuz further stimulate safe‑haven buying interest.
Domestic Chinese markets move in tandem with overseas benchmarks. Spot gold quotations on the Shanghai Gold Exchange have climbed, and retail gold‑ornament prices at brick‑and‑mortar jewellery stores have moved higher accordingly, stimulating physical‑gold consumption demand.
Institutional analysts warn that gold has registered substantial short‑term gains, which opens up risks of sharp pull‑backs. Gold prices are highly sensitive to Federal‑Reserve official speeches and shifts in geopolitical conflicts, translating into substantially amplified price volatility. Retail investors should refrain from chasing surging prices blindly and allocate assets according to personal risk‑bearing capacity. While gold retains its traditional value‑preserving attribute, it still carries obvious price‑swing risks, and one‑sided bullish assumptions are not advisable.
