Home / Metal News / A Bull Gold Market Has Just Begun

A Bull Gold Market Has Just Begun

iconMay 12, 2023 20:52
As the market expected that the Federal Reserve may pause interest rate hikes in the future, on May 4, COMEX gold prices hit the second highest of $2,085.4 per ounce, and the most active SHFE gold contract prices hit a record high of 459.98 yuan/gram.

As the market expected that the Federal Reserve may pause interest rate hikes in the future, on May 4, COMEX gold prices hit the second highest of $2,085.4 per ounce, and the most active SHFE gold contract prices hit a record high of 459.98 yuan/gram.

International gold prices have risen alarmingly amid the US and European central banks raising interest rates, continued banking turmoil, the US debt ceiling crisis, rising concerns about economic recession in Europe and the United States, and falling stock indexes in Europe and the United States. COMEX gold and SHFE gold have risen 12% this year. The market expects that the international gold price will reach a high of $2,500 per ounce this year.

The rising global risk aversion has also stimulated a substantial increase in the demand for gold from central banks around the world. According to the World Gold Council, in the first quarter, the global gold demand dropped sharply by 13% year-on-year to 1,081 mt.   Central banks in many countries are still keen to buy gold, increasing the global official gold reserves by 228 mt. 

According to some analysts, based on historical experience, after the Fed raises interest rates, the upward trend of gold prices will continue until the economy shows initial signs of improvement after a period of interest rate cuts. From this point of view, the upward trend of gold will continue.

Some analysts also said that in the long run, anti-globalisation has led to a decline in trust in the U.S. dollar and U.S. debt, and gold, as the world's common currency, has gained more market trust. The price of gold is expected to rise further.

George Milling-Stanley, chief gold strategist at State Street Global Advisors, is firmly bullish on the outlook for gold prices, saying, "I don't think we've just seen a peak in gold prices. I think gold has a solid foundation to move higher.

Huaxi Securities said that gold prices still have a long-term basis for gains.

More popular news:

'Bond King' Jeffrey Gundlach Says Sharp Fed Rate Cuts By Year-End Will Push Up Gold Prices

Rio Tinto Warns of Risks for Paying High Premiums for Lithium Mines after Plunging Lithium Prices Triggered Acquisition Rush

Citigroup Warns European Commercial Real Estate Values Will Plummet 40%, But Sees Medium-Term Opportunity

IMF: US Debt Defaults Will Take a Heavy Toll on Global Economy, Global GDP Growth Can Plunge

Goldman Sachs Warns of Serious Risks US Dollar Will Lose Reserve Currency Status on Debt Ceiling Standoff

Goldman Sachs Sees European Gas Prices Tripling, Gives Price Forecast in H2 2023

BofA Sharply Lowers Forecast for Oil Price, Global Oil Consumption in 2023

UBS Raises China GDP Growth Forecast, Sees Earnings from China Stock Market Soaring, RMB Appreciating

Global Aluminium Inventory to Plunge Further amid Supply Headwinds, LME Aluminium Prices to React Fast

Takeaways of Warren Buffett and Berkshire Hathaway’s 2023 Annual Meeting

High Lithium Ore Prices in Australia will Drive Lithium Prices Rebound, Reasons Prevent Output to Grow

Sharp Output Cuts Led to Lithium Ore Shortages, High Import Prices Drove Lithium Salt Producers to Shut Down

US Treasury Bill Rates Soar to Record High on Debt Ceiling Jitters

Russia is Accelerating Technology to Become Top Liquefied Natural Gas Supplier by Tripling Exports By 2030

No Other Country can Replace China's Manufacturing Industry Including India

Global Manufacturing PMI in April Points to Greater Downward Pressure on Global Economy

SMM Daily Comments (May 5): LME Base Metals Rose across the Board, SHFE Nickel Plunged

SMM Daily Comments (May 9): Most LME Base Metals Closed Lower, SHFE Nickel Prices Plunge, Ferrous Metals Mostly Rose

SMM Daily Comments (May 12): SHFE Base Metals and Silver Prices Crashed, Most LME Base Metals Prices Went Down, Oil Posted 3-Day Losing Streak

A Bull Gold Market Has Just Begun 

Fitch Ratings Raises Saudi Arabia IDR, Says World Bank Reason and High Dependence on Oil Remain a Weakness for the Country's Rating

Copper Shortage Is Irreparable Even after Biggest Mergers and Acquisitions, Here’s Why

Buffett Talks about Banking Crisis and Bank Stocks He Bought, Munger Warned Commercial Real Estate: the City Will Be Seriously Hollowed Out

Futures market
Market forecast
Market review
Macro economy

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars