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2025-12-18 01:50:17
【The strategic value of gold is becoming increasingly prominent, and five factors are driving the current surge in gold prices】 (1) International gold prices broke through the historical mark of $4,300 per ounce. This surge was mainly due to the continued weakening of the US dollar and the market's strong expectation of a Fed rate cut, highlighting investors' concerns about macroeconomic uncertainty and confirming gold's status as the most reliable safe-haven asset in the world. (2) There are five core factors driving the current surge in gold prices: First, the US dollar index fell to a multi-month low. Based on the negative correlation between gold and the US dollar, the demand for gold by holders of non-US currencies was greatly activated. Second, the expectation of a Fed rate cut was rising. A rate cut would reduce the opportunity cost of holding gold, attracting hedge funds and other institutions to increase their holdings. Third, central banks in many countries accelerated their gold purchases, promoting the diversification of reserve assets and providing structural support for gold prices. Fourth, inflation concerns have not been eliminated, and gold's anti-inflationary properties continue to be favored. Fifth, geopolitical tensions and the risk of economic slowdown have led to a surge in market risk aversion. (3) Looking ahead, if the Fed cuts interest rates as expected and the US dollar continues to weaken, gold prices are expected to remain high. However, if inflation rebounds or policies shift in the short term, gold prices may also see a correction, but in the long run, the strategic allocation value of gold is becoming increasingly prominent.
