Gold's rising momentum continues unabated, continue to focus on
As a traditional safe-haven asset, gold is often favored during periods of geopolitical turmoil. So far this year, gold prices have risen 35% and are expected to record their best annual performance since 1979. The intensified conflict between Israel and Lebanon has led to tensions, further boosting market demand for gold. Israel's recent air strikes have caused a large number of civilian casualties, attracting widespread attention and condemnation from the international community. The Lebanese Prime Minister said that the two sides may reach a ceasefire agreement in the next few days. Although this news may ease short-term tensions, market concerns about the future situation remain.
The release of US third-quarter economic data showed that GDP grew 2.8% month-on-month, and consumer spending grew 3.7% at the fastest rate in a year and a half. Despite the strong economic performance, inflation has slowed, with the core personal consumption expenditures (PCE) price index rising only 2.2%. These data provide new clues to the Fed's policy path. The market generally expects the Fed to cut interest rates by 25 basis points at its meeting next week. Despite strong economic growth, gold remains the first choice for investors in an uncertain environment. As the election approaches, the market is full of doubts about the future direction of US economic policies, and the safe-haven demand for gold may rise further.
The supply and demand of gold also affects the price. Uncertainty in the global economy has prompted investors to increase their allocation to gold, especially in a low-interest rate environment, where the attractiveness of gold as an interest-free asset has increased. At the same time, the loose policies of central banks around the world continue to support gold prices. In response to the economic slowdown, many central banks have generally adopted measures such as interest rate cuts and quantitative easing, which has further boosted demand for gold.
On Wednesday, it hit a record high of $2,789.89 per ounce. On Wednesday, mainly driven by the uncertainty of the US presidential election and geopolitical tensions, investors' demand for safe-haven assets increased significantly. Gold hit a record high again on Wednesday. Today, investors continue to pay attention to the 1-hour support area below 2,778, and go long on gold after the correction stabilizes.
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