After several months of fluctuating and recovering, the price of gold has risen markedly recently. The price of pure gold jewelry from many brands such as Chow Tai Fook remained stable at 1,300 yuan per gram and reached 1,355 yuan per gram on August 20. The monthly increase has already exceeded 100 yuan per gram. On August 20, the international gold price once returned to around 4,500 US dollars per ounce, up more than 10% from the beginning of this month. The reporter noticed that since August, international gold prices have broken away from previous fluctuations in the range of 4,000 to 4,100 US dollars per ounce, opening up room for upward movement. Driven by the rise in international gold prices, domestic gold prices have recently shown an upward trend. On August 20, the price of AU99.99 spot gold on the Shanghai Gold Exchange closed at 968.14 yuan per gram, with a cumulative increase of 9.4% since August. In terms of spot positions, gold ETF holdings have increased markedly recently. As of August 19, the holding volume of the world's largest gold ETF “SPDR Gold Trust” was 1034.65 tons, and the fund's holdings increased by 27.6 tons in August. In the domestic market, the volume of gold spot deferred settlement contracts on the Shanghai Gold Exchange continued to rise, with a total turnover of 226.71 tons from August 10 to 14. According to the World Gold Council and other institutions, the weakening of data on US employment and retail sales has reduced the urgency of the Federal Reserve's interest rate hike in September, which is beneficial to gold prices. This is one of the important reasons for the significant rebound in gold prices in this round. At the same time, given that central banks around the world have long wanted to reduce their exposure to the US dollar, continued central bank purchases provided bottom support for the gold market. The UBS Wealth Management Investment Director's Office said that central banks around the world purchased 289 tons of gold in the second quarter, and the central bank's gold purchase volume is expected to be between 750 and 1,000 tons throughout the year, and demand for gold purchases will remain high. It is worth mentioning that although the yield on US 30-year Treasury bonds once soared to the highest level in the past 19 years, as the US Treasury Department announced on August 19 that it would drastically increase the scale of long-term treasury bond repurchases, liquidity easing expectations are depressing the actual yield on US bonds and weakening the attractiveness of the US dollar, and demand for safe haven and preservation of gold continues to be boosted. “US bonds and long-term bonds from many other developed economies have been sold off. Soaring long-term yields push up the opportunity cost of holding gold, putting some pressure on gold prices in the short term. However, the total debt of the US federal government has exceeded 40 trillion US dollars, and Japan's debt ratio is high. In the medium to long term, it has strengthened the allocation value of gold as a sovereign credit hedge, and the safe-haven premium of gold is expected to continue to rise.” Qu Rui, senior deputy director of Dongfang Jincheng's research and development department, said. However, many industry insiders pointed out that the gold market is clearly intertwined recently. Concerns about inflationary stickiness have been repeated due to the prolonged geographical conflict in the Middle East and high oil prices. Furthermore, the short-term cumulative increase in gold prices exceeds 10%, and profit settlement pressure may trigger a pullback at any time.
Zhitongcaijing · 1d ago
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After several months of fluctuating and recovering, the price of gold has risen markedly recently. The price of pure gold jewelry from many brands such as Chow Tai Fook remained stable at 1,300 yuan per gram and reached 1,355 yuan per gram on August 20. The monthly increase has already exceeded 100 yuan per gram. On August 20, the international gold price once returned to around 4,500 US dollars per ounce, up more than 10% from the beginning of this month. The reporter noticed that since August, international gold prices have broken away from previous fluctuations in the range of 4,000 to 4,100 US dollars per ounce, opening up room for upward movement. Driven by the rise in international gold prices, domestic gold prices have recently shown an upward trend. On August 20, the price of AU99.99 spot gold on the Shanghai Gold Exchange closed at 968.14 yuan per gram, with a cumulative increase of 9.4% since August. In terms of spot positions, gold ETF holdings have increased markedly recently. As of August 19, the holding volume of the world's largest gold ETF “SPDR Gold Trust” was 1034.65 tons, and the fund's holdings increased by 27.6 tons in August. In the domestic market, the volume of gold spot deferred settlement contracts on the Shanghai Gold Exchange continued to rise, with a total turnover of 226.71 tons from August 10 to 14. According to the World Gold Council and other institutions, the weakening of data on US employment and retail sales has reduced the urgency of the Federal Reserve's interest rate hike in September, which is beneficial to gold prices. This is one of the important reasons for the significant rebound in gold prices in this round. At the same time, given that central banks around the world have long wanted to reduce their exposure to the US dollar, continued central bank purchases provided bottom support for the gold market. The UBS Wealth Management Investment Director's Office said that central banks around the world purchased 289 tons of gold in the second quarter, and the central bank's gold purchase volume is expected to be between 750 and 1,000 tons throughout the year, and demand for gold purchases will remain high. It is worth mentioning that although the yield on US 30-year Treasury bonds once soared to the highest level in the past 19 years, as the US Treasury Department announced on August 19 that it would drastically increase the scale of long-term treasury bond repurchases, liquidity easing expectations are depressing the actual yield on US bonds and weakening the attractiveness of the US dollar, and demand for safe haven and preservation of gold continues to be boosted. “US bonds and long-term bonds from many other developed economies have been sold off. Soaring long-term yields push up the opportunity cost of holding gold, putting some pressure on gold prices in the short term. However, the total debt of the US federal government has exceeded 40 trillion US dollars, and Japan's debt ratio is high. In the medium to long term, it has strengthened the allocation value of gold as a sovereign credit hedge, and the safe-haven premium of gold is expected to continue to rise.” Qu Rui, senior deputy director of Dongfang Jincheng's research and development department, said. However, many industry insiders pointed out that the gold market is clearly intertwined recently. Concerns about inflationary stickiness have been repeated due to the prolonged geographical conflict in the Middle East and high oil prices. Furthermore, the short-term cumulative increase in gold prices exceeds 10%, and profit settlement pressure may trigger a pullback at any time.
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