OEXN reports: On December 4, both Comex*** and spot** hit record highs.
In addition to ordinary investors snapping up**, central banks around the world are also increasing their holdings**, with all central banks buying 800t** in the first three quarters of 2023, up 14% from the same period last year, the gold price is on the rise, and 24% of central banks intend to continue to increase their reserves over the next year.
So why is the price of gold higher?
Goldman Sachs analysts said: "The market is betting that the Federal Reserve may start cutting interest rates in the first half of next year, and as interest rates fall, it may weaken the position of the dollar, and because ** is priced in by the dollar, the weak dollar will make ** cheaper for international buyers, which in turn will push up demand, followed by geopolitical conflicts are also good for gold prices." ”
The chasm between market rate cut expectations and the Fed means that there is a great deal of uncertainty ahead. Reinforcing market expectations for future Fed rate cuts, CME Group's tools show a more than 50% probability of betting that the Fed will start cutting rates by 25 basis points in March next year.
Wall Street analysts said in an interview with OEXN: "The Fed's monetary policy will turn from tight to loose, geopolitical conflicts are becoming more and more obvious, and other factors may make ** in the short term in a bullish phase, but in the medium and long term, ** there is still uncertainty." ”
However, OEXN analysts said: "The overall trend is upward this year, with a one-year increase of more than 15%, and in the week of November 28, speculators' net long positions in COMEX increased by 29,516 contracts to 144,410 contracts, a new high in more than six months."
At present, it is at a historical high, and Wall Street investment banks have also given expectations that it may hit $2,300 next year, but OEXN still wants to remind investors that they still need to guard against potential volatility risks, and the future trend of gold prices will still face more uncertainty.