Recently, both international and domestic gold prices have repeatedly hit new highs, and jewelry gold prices in various brand gold stores have also skyrocketed. According to data from Jintou.com, taking the gold price of Chow Tai Fook jewelry as an example, the gold price of this brand's jewelry was still 630 yuan/gram on March 1st, and the latest quotation on March 9th was 663 yuan/gram. In less than 10 days, the gold price per gram has increased by more than 30 yuan. The spot and futures prices of gold in the international market have also risen strongly. Taking spot prices as an example, Wind data shows that as of March 8th, London spot gold has achieved eight consecutive increases. The closing price on March 1st was $2082.395 per ounce, and on March 8th it was $2178.965 per ounce, setting a new historical high with a nearly 5% increase in six trading days. At the same time, the performance of gold prices in the domestic market is also very strong. On March 7th, the spot price of Au99.99 gold on the Shanghai Gold Exchange opened at 499.5 yuan/gram, and then broke through a historic high of 500 yuan/gram during the trading session, closing at 505.1 yuan/gram on the same day. The latest data from the Shanghai Gold Exchange shows that on March 8th, Au99.99 closed at 505.84 yuan/gram, still at a high level. So, what are the reasons behind the rise in gold prices this round? Liu Siyuan, Chief Analyst of Leading Financial, stated in an interview with Securities Daily that multiple economic data released by the United States have recently fallen, and the Federal Reserve's continuous high interest rate policy has achieved its goal. The market has achieved its consensus of starting interest rate cuts in June this year. Affected by this, the US dollar has continued to decline, driving up gold prices to record highs. Associate Professor Liu Chunsheng of Central University of Finance and Economics stated in an interview with Securities Daily that the market's expectation of the Federal Reserve's interest rate cut has weakened the US dollar index, leading to a strengthening of gold prices denominated in US dollars. As stated, since mid February, the US dollar index has shown a downward trend. According to Wind data, the US dollar index fell by a cumulative 1.89% from February 15th to March 8th, and closed at 102.742 points on March 8th, below the 103 level. Liu Siyuan stated that recent international geopolitical conflicts and continuous purchases of spot gold by central banks around the world have also jointly supported the rise in gold prices. According to the report released on March 8 by the WeChat official account of the World Gold Association, the global official gold reserve will increase by 39 tons in January 2024, more than twice the net gold purchase volume (revised) of 17 tons in December last year, and it is also the eighth consecutive month that the global central bank has achieved net gold purchase. From the perspective of China's situation, the gold reserve data released on March 7th showed that as of the end of February 2024, China's central bank's gold reserves were reported at 72.58 million ounces, an increase of 390000 ounces compared to the previous month. Since the start of the current round of gold reserve increase by the People's Bank of China in November 2022, it has achieved a continuous increase for 16 months. Zheng Lei, Chief Economist of Samoye Cloud Technology Group, told Securities Daily that as a globally recognized hard currency, gold has stable value and is an important component of diversified asset allocation. At the same time, gold reserves can enhance China's voice in the international financial system and enhance the international status of our currency. “
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