Gold Prices Soar Near $4700 Amid Weakening Dollar and Rising Demand

Gold prices have reached their highest level since mid-May, hitting $4697.07 per ounce on August 25th.

This marks a significant increase of about 15% from June 30th's low of $3942.43 per ounce, with the price accelerating upward in August.

The weakening US dollar is seen as the primary catalyst for this rise, making gold more attractive to non-dollar investors.

Li Gang, Research Director of China Forex Investment Research Institute, attributed the increase to a combination of factors, including the US Treasury's repurchase of long-term bonds and the decline of the US dollar.

The demand for gold allocation has picked up, with global physical gold ETFs recording a net inflow of about 3 billion US dollars in July, and positions increasing by about 23 tons.

Some investors have seen significant losses due to the price rise, including Ms. Yan, who held 170 grams of gold investment products with an average position price of about 1113.29 yuan per gram, resulting in a floating loss of approximately $19,000 based on the August 25th price.

Experts predict that the gold price may challenge the $5000 mark, citing the US Treasury's intervention in the bond market and the weak demand for medium and long-term US Treasuries as key factors.