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Recently, gold prices at home and abroad have repeatedly hit new highs, and gold has once again ushered in a buying and investment boom. At the beginning of March, the international gold price was already standing above $2,100, setting a record for the all-time high set in December last year. At the same time, the domestic gold price has also soared, and the price of pure gold jewelry of brand gold has not only exceeded 500 yuan/gram in recent years, but also exceeded 600 yuan/gram, and many are currently around 645 yuan/gram, and some have reached the level of 650 yuan/gram.
According to CCTV News on March 21, the Federal Reserve of the United States ended its two-day monetary policy meeting on the 20th local time and announced that it would keep the target range of the federal funds rate between 5.25% and 5.5%. The Fed is expected to cut interest rates three times this year.
Driven by this news, spot gold continued to rise, once rising to $2222.65 per ounce, hitting a new all-time high. As of press time, spot gold was at $2205.25 per ounce, up 0.88%.
Galaxy Futures precious metals researchers believe that the rise in international gold prices, on the one hand, is that the recent U.S. macroeconomic data is not in line with expectations, on the other hand, the market risk aversion caused by Fitch's downgrade of some banks in New York has risen, and at the same time, the world's central banks continue to buy gold and continue to raise the gold price center. Therefore, the international gold price has created a round of upward trend under many favorable factors.
Looking back at the development of the global gold industry:
- Global demand for gold
From the perspective of global gold consumption demand, the consumption of gold in mainland China fluctuated from 2015 to 2022. Gold demand in 2022 was the strongest growth in recent years, with global demand surging 18% to 4,740.7t, the fastest growth rate in recent years. Among them, the demand in the fourth quarter of 2022 increased significantly, which was the highest single-quarter demand in the past decade, thus contributing greatly to the high growth of demand in the whole year of 2022. In the first half of 2023, global gold demand reached a cumulative 2,460.1t.
The downstream demand for gold can be divided into gold jewelry, industrial applications, gold coins and gold bars, gold ETF investment demand and central bank reserves. According to statistics from the USGS, jewellery is the largest consumer market for gold, accounting for 47% of demand in 2022. This is followed by central bank reserves, accounting for 20%.
- Global gold price trends
From the perspective of gold price trends, from 2017 to the first half of 2020, the global gold price showed a fluctuating growth trend, reaching a high of US$2,000 per ounce in July 2020. From 2021 to 2023, the global gold price fluctuated at a high level, reaching $2,045.4 per ounce in December 2023.
China Post Securities released a research report saying that recently, the price of precious metals has continued to rise, and the gold price has exceeded $2,200 to hit a new high. The market follows the Federal Reserve policy and U.S. economic data to adjust the expectations of interest rate cuts, and its expectations are then reflected in the gold price, and the Fed's attitude Chairman Powell also said that interest rate cuts will be considered this year, so in the short term, gold prices may pull back slightly and maintain high volatility.
Note: This article is for content dissemination only and does not constitute any investment advice!
Prospective Economist APP Information Group
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