Newsletter summary
In the near future50freespinsonstarburstnodepositDespite higher-than-expected US employment and inflation data, gold prices bucked the trend and hit an all-time high. The market generally believes that the central bank's purchase of gold is the main driver, but the analysis found that the relationship between the two is unstable. Global central bank gold reserves did not increase significantly in March, suggesting that central bank purchases are not at the heart of the rally. Looking ahead, in the context of global monetary overissuance and geopolitical uncertainty, the trend of central bank gold purchases may continue, but gold prices may fluctuate in the short term, and investors need to pay attention to market developments.
Text of news flash
The price of gold continues to rise, causing market attention to deviate from the fundamentals.
Recently, despite higher-than-expected US employment and inflation data, gold prices have continued to rise to record highs. It is generally believed that the central bank's purchase of gold may be one of the main factors driving up the price of gold. However, after in-depth analysis, it is found that the relationship between central bank buying behavior and gold price is not stable.
From the point of view of the demand structure, the demand for gold purchased by the central bank fluctuates greatly, and its proportion in the overall demand has increased significantly in the past two years. Nonetheless, there was no significant increase in global central bank gold reserves in March, suggesting that central bank purchases may not be at the heart of this round of gold price rises.
The central bank buys gold for a variety of reasons, including as a means of payment for international trade, strengthening sovereign currency credit, risk aversion and value preservation. In recent years, despite calls for "de-dollarization", it is actually not the core driver of central bank gold purchases.
Looking ahead, the trend of central bank buying gold is likely to continue against a backdrop of overissued global currencies and increased geopolitical uncertainty. However, in the short term, gold prices may be disturbed by trading factors, volatility or even pullback risks, but the overall trend is still too much. Investors need to pay attention to the market dynamics and deal with them cautiously.
Hexun self-selected Stock Writer risk Tip: the above content is only the views of the author or guest, does not represent any position of Hexun, and does not constitute any investment advice related to Hexun. Before making any investment decision, investors should consider the risk factors related to investment products according to their own circumstances and consult professional investment advisers if necessary. Hexun tries its best but cannot confirm the authenticity, accuracy and originality of the above content, and Hexun does not make any guarantee or commitment.