On Friday the price of gold surged to reach a new record high of $2625 on the FXOpen platform. With the soaring gold price in addition to the Fed's policy of cutting interest rates, there is also hope that global central banks follow the Fed's policy of easing policy.
Several global central banks have lowered interest rates, such as the South African Reserve Bank (SARB) reduced its benchmark interest rate by 25 basis points, and the Central Bank of the Philippines reduced its interest rate by 250 bp to 7.0%. Meanwhile, the Reserve Bank of India (RBI) is expected to cut interest rates at its next meeting.
The Bank of Japan left interest rates unchanged with some speculating a rate hike is on the way. The People's Bank of China (PboC) also kept interest rates unchanged at 3.35%.
Goldman Sachs Research forecasts gold prices could reach $2,700 at the start of the year on the back of Fed interest rate cuts and gold purchases by developing country central banks, and growing concerns about the US debt burden.
Geopolitical risk factors also support gold as a safe-haven asset amidst global economic uncertainty and anticipation in the event of a major third world war. Countries such as China, Taiwan, Russia, Europe, and the Middle East are currently making massive purchases of gold as a safe-haven asset.
Today the Japanese bank holiday may affect market liquidity, but traders are also paying attention to US manufacturing PMI and service PMI news
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Several global central banks have lowered interest rates, such as the South African Reserve Bank (SARB) reduced its benchmark interest rate by 25 basis points, and the Central Bank of the Philippines reduced its interest rate by 250 bp to 7.0%. Meanwhile, the Reserve Bank of India (RBI) is expected to cut interest rates at its next meeting.
The Bank of Japan left interest rates unchanged with some speculating a rate hike is on the way. The People's Bank of China (PboC) also kept interest rates unchanged at 3.35%.
Goldman Sachs Research forecasts gold prices could reach $2,700 at the start of the year on the back of Fed interest rate cuts and gold purchases by developing country central banks, and growing concerns about the US debt burden.
Geopolitical risk factors also support gold as a safe-haven asset amidst global economic uncertainty and anticipation in the event of a major third world war. Countries such as China, Taiwan, Russia, Europe, and the Middle East are currently making massive purchases of gold as a safe-haven asset.
Today the Japanese bank holiday may affect market liquidity, but traders are also paying attention to US manufacturing PMI and service PMI news
View attachment 7596
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