Gold Price Surges 10% Amid Easing Interest Rate Hike Expectations
The gold price has surged by 10% since June, with the international price rising to $4,400 per ounce. This rebound is attributed to a combination of factors, including the clearance of previous positions, easing interest rate hike expectations, and continued central bank purchases of gold.
According to fund managers interviewed by China Fund News, the 'long bull' logic for gold remains solid in the medium and long term. However, there is still short-term uncertainty, and the current stage is best described as a secondary recovery period after high-level rebalancing.
The clearance of previous positions has been a key driver of the rebound, with signs of replenishment appearing in early August. The market's pricing of further interest rate hikes has also eased, following moderate inflation data that cooled expectations of interest rate hikes and reduced pressure on gold prices.
Central bank purchases have played a significant role in supporting gold prices, with the People's Bank of China increasing its gold holdings by about 20 tons in July. Global central banks continue to buy gold, providing solid bottom support for gold prices.