Gold craze, what to think about it

　　FX168 Financial News (Asia-Pacific) News Recently, as gold continues to rise and sets new historical highs, analysts pointed out that the price of gold is expected to continue to rise and even exceed $3,000.

　　Yesterday, the Shanghai Gold Exchange issued a notice saying that precious metal price fluctuations have increased significantly recently and market risks have significantly intensified. All member units remind investors to invest rationally.

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Gold prices hit a record high

View on gold heading higher

　　Recently, spot gold and COMEX gold futures have both broken through record highs, hitting $2,700 per ounce for the first time. Under the strong trend of gold prices, the price of gold jewelry also exceeded 800 yuan/gram.

　　Paul Wong, market strategist at Sprott Asset Management, said that “gold has entered a new bullish phase, driven by central bank buying, rising U.S. debt, and a possible peak in the U.S. dollar.” Wong believes that the rise in the U.S. debt-to-GDP ratio will trigger concerns about debt sustainability, currency devaluation, and debt monetization, causing gold prices to rise. The global economy is facing inflationary pressure and an uncertain macroeconomic environment, so central banks and investors may allocate more funds to precious metals.

　　Citi analysts stick to their view that gold will reach $3,000 within the next 6 to 9 months. If tensions in the Middle East intensify, causing oil prices to surge, gold prices will find further support.

　　Wang Hongying, president of the China (Hong Kong) Financial Derivatives Investment Research Institute, said that given that the current loose monetary policy of the Federal Reserve and global instability still exist, these factors are expected to continue to support gold to maintain its upward trend. Gold is indeed in a high and volatile cycle. While it is “highest”, gold investment risks have increased. Especially when the market has been chasing rising prices recently, investors need to remain vigilant about short-term fluctuation risks.