Gold prices soared to a record high!Central banks around the world hoarded 800 tonnes of gold, wha

Mondo Finance Updated on 2024-01-22

comex*** breaks new all-time highs!On December 4, *** per ounce once approached $2,150 per ounce, while spot ** rose to 2,146 per ounce$87, another record. This surge in the international gold price triggered further growth in the domestic market. At present, comex*** tentatively reported 2047$6, up 026%。

Heat is not just a passion for ordinary investors, central banks have also become important buyers. According to the report of the World ** Association,In the first nine months of this year, central banks continued to increase their holdings**, which became a catalyst for gold prices**. In the first three quarters alone, central banks bought around 800t**, a staggering 14% quarter-on-quarter increase。This data suggests that global central banks are viewing ** as an important reserve asset and may continue to buy more ** in the future.

According to a recent survey by the World Association, 24% of central banks plan to continue to increase their reserves over the next 12 months. This trend reflects the central bank's confidence in the market and further proves the importance of the market as a safe-haven asset.

Data released by the People's Bank of China showsChina's ** reserves reached 71.2 million ounces at the end of October, marking the 12th consecutive month of growth, adding 740,000 ounces. The increase in this data not only reflects the positive attitude of the People's Bank of China towards the market, but also shows China's recognition of the importance of the market as a reserve asset.

As can be seen from the gold purchases of global central banks, ** is receiving more attention as a safe-haven asset. In times of economic instability, ** is often seen as a safe investment option because its value can remain stable during difficult economic times.

There are multiple factors behind the new gold price hit, the most critical of which is the market's expectation of a rate cut by the Federal Reserve. The impact of geopolitical conflicts has diminished significantly, driving yields down and indirectly supporting gold prices. A chief investment strategist at Standard Chartered China's wealth management department said that the sharp rise in gold prices stemmed from the market's expectation of future interest rate cuts, which led to a sharp increase in yields, which in turn supported gold prices.

According to CCTV financial reports, there are still many people buying in the Shenzhen Shuibei wholesale market. Although the domestic *** has broken through the previous peak, as high as 483 yuan per gram, this has not had any impact on consumers' enthusiasm for buying **. On the contrary, consumers' desire to buy seems to be even higher, and they are keen to use ** as a means of preserving and investing value.

In recent years, with the promotion of brand premiums and various other factors, some **jewelry brands** have even reached a record high of 630 yuan per gram. This phenomenon not only shows the love and pursuit of consumers, but also reveals the high turnover rate of wholesale enterprises and production enterprises in the current market environment.

In the eyes of consumers, ** is an eternal, with a high degree of value preservation and appreciation ability***, therefore, they are more inclined to buy** to meet their investment and value preservation needs. With the increasing demand for people's quality of life, buying ** jewelry has become a way for them to show their wealth and status.

The turnover rate of wholesale enterprises and production enterprises has increased significantly, which is due to the increasing demand from consumers for **. By improving production efficiency and optimizing the management of the first chain, these enterprises have achieved rapid product circulation and efficient capital return. Such market conditions have also driven the development and innovation of the entire industry.

A senior investment adviser said"The psychology of consumers to buy more and more is the reason for this phenomenon. History shows that when the logic is widely recognized by the market, the asset will go further, and the asset will strengthen people's confidence in the asset, thus forming a cycle of buying more and more, and buying more and more. ”

Bai Wenxi, as the chief economist of IPG China, said: "In the process of *** lasting**, some consumers believe that **jewelry** will continue to climb in the future, resulting in an increase in purchase costs, so they choose to buy in time. In addition, consumers' willingness to buy safe-haven assets has also increased, further driving consumer demand.

The market is increasingly divided on whether the Fed will cut interest rates next year, which means that there is a huge uncertainty about the future. The Fed chairman insisted that it would not cut rates in the first half of next year, while leaving the option for further rate hikes. However, the market has instead strengthened expectations of a rate cut. CME Group's Fed Watch Tool showsThe market is pricing in an 85% probability of a rate cut in May next year and a 70% chance of a rate cut in March.

The chasm between market rate cut expectations and the Fed means that there is a great deal of uncertainty ahead. A strategist believes that the Fed's remarks and the economic slowdown shown in the Beige Book have strengthened the market's expectations for future Fed interest rate cuts.

In the second half of the year, market expectations for a pause in rate hikes and future rate cuts have been ahead of the Fed's dot plot. However, in the absence of a clear timing of the Fed's rate cuts, any divergence between economic data and market expectations could lead to market volatility.

For next year's ** jewelry consumption industry, the market is generally optimistic. A research report on investment promotion pointed out that since 2020, the tail clearance and head store opening of the ** jewelry industry have increased the concentration of the industry. At the same time, new processes such as 5G technology and ancient gold technology have improved the differentiation and fashion of ** jewelry.

Coupled with the gold price**, 2023 will usher in a concentrated release of demand for self-pleasing consumption, wedding jewelry and investment preservation. Multiple factors are jointly promoting the prosperity of the jewelry industry, and the consumption and investment demand is expected to continue to increase in 2024, and the prosperity of the industry is expected to rise steadily.

As the price of gold continues to rise, the market is more eye-catching. The purchasing power of central banks and the enthusiasm of ordinary consumers have both driven the price of gold to continue to climb. In the future, the divergence of market expectations for interest rate cuts and the Fed's decision will be the key factors determining the direction of gold prices.

* There are still uncertainties about the stability of the market and the medium and long-term development, but the prospects for the ** jewelry consumption industry next year are still optimistic, which gives positive confidence to industry insiders and consumers. Let's wait and see how the market develops in the future.

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