Your current location is:Fxscam News > Exchange Dealers
The price of gold is surging, approaching the target of $3,500.
Fxscam News2025-07-23 18:33:46【Exchange Dealers】2People have watched
IntroductionHong Kong's top ten international trading companies,Foreign exchange margin trading platform,Amid the worsening U.S. fiscal situation and large-scale sell-off of U.S. debt in the market, gold i
Amid the worsening U.S. fiscal situation and Hong Kong's top ten international trading companieslarge-scale sell-off of U.S. debt in the market, gold is experiencing a vigorous rally. Spot gold (XAU/USD) strongly surpassed $3,340 per ounce on Wednesday, marking the fifth consecutive day of gains. This indicates robust safe-haven demand and deep market concerns over long-term debt risks.
The U.S. Treasury's announcement of the 20-year Treasury bond auction results showed a winning yield skyrocketing to 5.047%. Not only is this about 24 basis points higher than last month, but it is also the highest level since October 2023, and the second time in history that auction pricing has exceeded 5%. This result has shocked the market and further heightened concerns about the sustainability of U.S. finances.
Priya Misra, an investment manager at JPMorgan Asset Management, pointed out, "The bond market is sending a strong signal to policymakers that fiscal deficits cannot be ignored."
Gold: Multiple Positive Factors Driving Prices Higher
The recent rise in gold prices is not coincidental. In addition to the financial market turmoil caused by the surge in U.S. Treasury yields, escalating geopolitical risks in the Middle East and Moody's downgrade of the U.S. sovereign credit rating (from Aaa down) have collectively triggered a surge in global safe-haven sentiment, making gold once again a core asset favored by global investors.
Data shows that since mid-May, gold has risen by more than 7%. Institutional investors and safe-haven funds continue to flow into gold ETFs and the physical bullion market, pushing prices higher.
UBS Group's latest report indicates that gold prices are expected to reach $3,500 per ounce within the year. In a more aggressive risk-aversion scenario, they could even soar to $3,800. "The longer the Federal Reserve maintains high interest rates, the higher the debt cost, which structurally benefits gold in the long term," wrote UBS analysts.
Market Expectations: Short-term High Volatility, Long-term Bullish
From a technical standpoint, the breakthrough of the $3,300 barrier in gold prices has opened new upward space. The next phase will challenge previous highs of $3,350 per ounce and the psychological threshold of $3,400. If global risk factors continue to ferment, the surge to $3,500 or even $3,800 is not impossible.
However, analysts also caution that the sharp short-term rise in gold prices may face some profit-taking pressure. But the overall trend remains upward, especially given the ongoing increase in central banks' gold reserves globally and the unresolved uncertainty surrounding U.S. finances, which enhances the strategic value of gold allocation.
Conclusion:
As global financial markets reassess U.S. deficit risks and geopolitical tensions, gold is playing an increasingly important role as a safe haven. If U.S. Treasury yields remain high, the Federal Reserve delays a shift towards easing, and global risk events continue to escalate, gold may enter a true "super bull market" in 2024.
Risk Warning and DisclaimerThe market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.
Very good!(31551)
Related articles
- SSJTCF is taking your money! Watch out!
- Global Markets Surge Amid Volatility: Rate Cuts Drive Fluctuations, Interest Rate Outlook Key
- The Chinese yuan remains stable with a slight appreciation, but tariff uncertainties persist.
- US dollar's trend: Trump's policies, oil prices, and geopolitics shape the future.
- Market Insights: Mar 12, 2024
- At Davos, Trump urged rate cuts and criticized inflation policies.
- GBP/USD Consolidates as Economic Worries and Policy Expectations Clash, Eyeing Short
- The Taiwan Dollar hits a nine
- Malaysia's Securities Commission alert list now includes 12 unauthorized firms.
- RMB exchange rate rebounds to 7.23, boosting bullish sentiment.
Popular Articles
- The ChatGPT craze sweeps through the American workplace, sounding the alarm!
- The Fed's asymmetric rate cuts and a strong dollar may spark global economic shocks.
- The yen nears 155, with a 70% chance of a January Bank of Japan rate hike sparking market buzz.
- Option traders bet on U.S. Treasury yields peaking, eyeing a TLT rebound.
Webmaster recommended
Market Insights: Jan 23rd, 2024
Korean won depreciation fuels inflation, political turmoil deepens economic challenges.
The Bank of Korea vows to stabilize markets amid forex and household debt risks.
The US Dollar Index falls as foreign exchange market volatility intensifies.
CSRC Chairman Wu Qing Sets Regulatory Priorities in Debut
The Bank of Japan holds rates, watching Trump's tariffs as markets seek signals from Ueda.
Japan's GDP growth forecast downward revised, central bank likely to maintain unchanged policy.
The dollar falls on economic concerns, while the yen and Australian dollar diverge.