On December 4, the international gold price broke through the $2,100 ounce mark in early trading, hitting a record high. However, after refreshing the all-time high, the international gold price trend reversed, and the cliff-like ** $112 ounce temporarily closed at $2041 an ounce, down 228%。The surge in international gold prices has also led to further growth in domestic retail and jewelry.
Recently, the volatility has been large, and the international gold price has skyrocketed.
Recently, the gold store has fluctuated greatly, first soaring to 630 yuan grams, and then appearing**. This volatility is mainly influenced by factors such as market sentiment and the Federal Reserve's monetary policy.
First of all, as a safe-haven asset, it has a certain hedging function in the fight against inflation, which is one of the reasons why it is favored by people. Especially after events such as the U.S. banking crisis and the U.S. ** debt ceiling crisis, risk aversion has risen, attracting funds to frantically long international gold prices.
However, Fed Chair Jerome Powell's recent comments left the possibility of further rate hikes, but the overall stance is hawkish. The Fed is widely expected to keep interest rates unchanged at next week's interest rate meeting. In addition, weaker-than-expected economic data in the US and continued easing inflationary pressures further cemented market expectations that the Fed has ended its rate hike cycle.
While it has historically been an excellent hedge against inflation, the current hype around rate cut expectations has been overly optimistic. Huang Jinwen, former director of strategic planning at the Chicago Mercantile Exchange, said that the Fed believes that it is now in the best position to achieve its inflation target without causing massive unemployment, which not only means that the current level of interest rates is appropriate, but also suggests that the economy is heading for a soft landing.
In addition, demand hit a record high in recent years, and as a commodity, it has a negative correlation with the US dollar. Since **is denominated in US dollars, the strong US dollar increases the cost for foreign investors, who have to pay higher ** with weak foreign exchange. This reduces the need for **.
Overall, volatility is mainly influenced by factors such as market sentiment, the Fed's monetary policy, and the direction of the US dollar. Although it is considered a safe-haven asset, investors need to remain rational and cautious about investing in the face of complex economic conditions and policy changes.