Rise! Rise! Rising non-stop! Gold prices recorded a seventh consecutive week of increases, approaching historical highs
Affected by the U.S. government shutdown and the uncertainty of Federal Reserve policies, gold prices have risen for the seventh consecutive week, with spot gold prices increasing by 0.81% to $3,886.71 per ounce, just $10 away from the historical high. This year, gold prices have risen by approximately 48%, potentially marking the largest annual increase since 1979. With increasing market uncertainty, analysts suggest that the rise in gold prices is supported by global central bank purchases and increased holdings in gold ETFs, along with interest rate cut expectations being favorable for gold. In the short term, gold prices may face the risk of a pullback, while other precious metals have also generally risen
According to Zhitong Finance APP, influenced by multiple factors such as the U.S. government shutdown and the unclear outlook of Federal Reserve policies, gold prices rose again on Friday, marking the seventh consecutive week of increases. The spot gold price increased by 0.81% that day, reaching $3,886.71 per ounce, only about $10 lower than the historical record set on Thursday. Since the beginning of this year, gold prices have accumulated an increase of approximately 48%, expected to record the largest annual increase since 1979.
Market participants pointed out that the U.S. government shutdown forced the non-farm payroll report on Friday to be postponed, making investors rely on data from private institutions to gauge economic trends, which increased market uncertainty. Chicago Federal Reserve President Goolsbee stated this week that the absence of official data would make it more difficult for the central bank to grasp the direction of the economy. The money market has almost fully priced in the expectation of a 25 basis point rate cut by the Federal Reserve at the end of this month, and another rate cut is generally anticipated in December. Rate cuts tend to benefit non-interest-bearing precious metal assets.
Analysts noted that the strong rise in gold prices is mainly supported by the continuous purchases of gold by global central banks and the increase in gold ETF holdings. At the same time, the trend of the Federal Reserve resuming rate cuts further solidifies the safe-haven and investment value of gold. However, technical indicators show that gold prices have remained in the overbought range for the past month, indicating a potential risk of correction in the short term.
In addition to gold, other precious metals also generally strengthened. Silver rose by 2.1%, reported at $47.97 per ounce; platinum and palladium also recorded gains. Meanwhile, the Bloomberg Dollar Spot Index fell by 0.1% that day, further supporting the prices of precious metals denominated in dollars
