Close modal

Market Updates

Financial News

The price of gold has soared, "Cyclone", and it can't stop "buying and buying"

2024-03-25

  • In recent times, the topic of gold prices has caused the topic one after another. #. Since last year, the continuous rise in gold prices ignited consumers' enthusiasm for buying. Although the price of gold has continued to rise, consumers have no enthusiasm for buying gold. After the Spring Festival in the past, the off -season of gold was sold. In March and April, the "law" that purchased gold was broken than the usual price more cost -effective. This year's international gold prices have continued to rise, and the purchase of golden heat has continued from the Spring Festival to the present. The "Global Gold Demand Trends Report" released by the World Gold Association shows that in 2023, the consumption of domestic gold jewelry in China reached 282 billion yuan, a record high.

    The reasons for the rising price of this round of gold, it seems to be the result of multiple stacks, including the market's expectations of the Federal Reserve ’s interest rate reduction cycle again, and the superposition of geopolitical conflict factors. Another factor supporting gold prices is the golden boom of central banks from various countries. According to the "Global Gold Demand Trends Report" issued by the World Gold Association, the global central bank continued to purchase gold in 2023. The annual net purchase volume was 1037 tons, only 45 tons less than the historical record in 2022. According to the data released by the People's Bank of China, in February 2024, the central bank's gold reserves increased by 390,000 ounces month -on -month, an increase in 16 consecutive months. Since the founding statistics, the central bank has increased its holdings of the longest period of time. About 282 tons.

    After the gold price breaks through a record high, from the perspective of investor, the short -term gold price is high. Even after breaking through the new high, the pressure of technical callback is relatively large. It is recommended that consumers maintain a prudent attitude and should not blindly chase high blindly. When the price is adjusted, it can be appropriately held according to its own situation. At present, gold is at a high level of history, and there are still many factors that affect the trend of gold. There are still many factors that have high professionalism for investors. From the perspective of steady investment, investors need to invest rationally to prevent potential risks.

    There are a few main factors that promotes the rise in gold prices: the first is the golden fever in Asia. Nitsh Shah is a research director of the raw material market and macro market research in the American Smart Tree Investment Corporation. He believes that the important reason for the rise in gold prices is that consumers' demand for physical gold has increased. Asia's gold imports are in high levels. Many central banks are buying gold with large quotas that have not been in the past two years. He expects that the trend of gold in many central banks will even last 10 to 20 years. Compared with the central bank of the Seven Kingdoms Group, the central bank of the emerging industrial country is significantly less gold in the investment portfolio, so there is still room for rising gold prices. The central bank of the emerging industrial countries wants to rely on gold to prevent the sanctions that the Seventh -Kingdoms Group may be forcibly implemented. Once sanctions are subject to sanctions, the central bank of emerging industrial countries can still use gold to complete transactions. The central banks of various countries buy gold and gold demand for Asian families support gold prices.

    Followed by gambling in the futures market. The direct reason for the rise in gold prices in early March is to go to the US futures market to find. The Gold Futures of the New York Commodity Exchange has increased by about 80,000 copies in the past week, and the transaction volume is equivalent to about 240 tons of gold. If the off -position contract and the price of gold rose rapidly at the same time, it indicates that the New York Commodity Exchange has generated new speculative multi -headed. This means that traders are gambled in gold prices.

    It is once again geopolitical risks. In addition to people's estimates that the United States and the euro zone will reduce interest rates, geopolitical risks may also promote the rise in gold prices. After Hamas launched an attack on Israel on October 7, 2023, the price of gold rose first. Many investors had only prepared a limited double conflict, but by March of this year, the Marcerian organization was still attacking vessels on the Red Sea. Many people now understand that this war will last longer, so it is taking risk aversion measures for this.

    Gold prices have reached 4 consecutive days in history 4 times. It appeared after the outbreak of the petroleum crisis in 1973. When the financial crisis accelerated in 2008, the price of gold even rose for 7 days. The above -mentioned cases show that geopolitical crises and economic crises usually cause gold prices to skyrocket.

    If you want to invest in gold, it is best not to consider jewelry gold with a large price and brand premium. Do not use the purchase of gold jewelry as investment gold. Because it contains high process costs, investing gold can choose the exchange standard gold bars or gold blocks. It has the advantages of low transaction costs and quality assurance. Investors must have basic investment wealth management knowledge, and it is best to find a way to invest in them. Investment must buy the products they know. Now that young people are investing, they are prone to the "herd effect". If you buy whatever you buy, you can buy it.

    This article comes from: Selected from the research report of securities companies (the author is a director and professor of economics)

Contact Us

  • Address:Unit E, 35th Floor, Block B, Billion Centre, 1 Wang Kwong Road, Kowloon Bay, Hong Kong
  • Fax:(852)3759 6800
  • Customer Hotline:(852)3759 6888
  • Email:cs.support@prestigegroup.com.hk

24 hours to serve you
during the trading hours

close ×
Online Service

Scan to contact customer service