Gold tops $2,500 for the first time, Will it rise further?
Gold prices are likely to benefit from a rate cut cycle. Since 1990, the Federal Reserve has cut interest rates five times, and the gold price has risen in four rate reduction cycles. Five rate cut cycles gold prices rose an average of 11.2%, the highest of which rose nearly 30%. With the opening of the Federal Reserve interest rate cut cycle, a new round of gold market or is starting. From the subsequent point of view, gold prices or will continue the bull market, mainly based on the following three reasons:
First, the slow recovery of the global economy, the gradual withdrawal of Western countries from the high interest rate environment, the scarcity of high-quality assets and the increase of market uncertainties will make gold assets more attractive;
Second, US inflation is gradually declining, and the Federal Reserve's interest rate cut cycle is about to open, which will bring continuous support to gold;
Third, factors such as "de-dollarization" and geopolitical risks will bring incremental demand for precious metals, and central banks are continuing to increase their holdings of gold, providing a long-term upward driving force for gold prices.
First, the slow recovery of the global economy, the gradual withdrawal of Western countries from the high interest rate environment, the scarcity of high-quality assets and the increase of market uncertainties will make gold assets more attractive;
Second, US inflation is gradually declining, and the Federal Reserve's interest rate cut cycle is about to open, which will bring continuous support to gold;
Third, factors such as "de-dollarization" and geopolitical risks will bring incremental demand for precious metals, and central banks are continuing to increase their holdings of gold, providing a long-term upward driving force for gold prices.
Note
Gold opened little changed at $2,504 on Monday ahead of the week when the Federal Reserve will confirm whether to cut interest rates.
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