In recent times, the gold market has experienced a series of dramatic fluctuations, attracting widespread attention from global investors. In early June, the international spot gold price fell below the important psychological threshold of $2,290 per ounce, with a daily decline of about 3% and a low of $2,286. The domestic market also felt the chill, with the Shanghai Gold Exchange’s AU9999 touching a low point in nearly two months. The price per gram of branded gold jewelry also fell from its peak to around 710 yuan per gram.
Analysis of the reasons for the market decline: Multiple factors intertwined
The reasons for the decline in the gold market are multifaceted. In recent years, the global central bank’s gold buying spree has been an important factor supporting the rise in gold prices. However, as gold reached historic highs, central banks became more cautious in their buying activities. For example, the People’s Bank of China, which had been increasing its holdings for 18 consecutive months since November 2022, pressed the “pause button” in May and did not increase its holdings for the first time, putting pressure on the market. Market participants believe that the slowdown in central bank buying activity is directly related to the recent decline in gold prices.
Secondly, the strong performance of US employment data is also an important factor influencing gold prices. The better-than-expected employment data has enhanced market confidence in the US economy and reduced the demand for gold as a safe-haven asset.
In addition, the monetary policy adjustments of global central banks, especially those in Europe and the United States, and market expectations of future interest rate changes have also put pressure on gold prices, intensifying bearish sentiment in the gold market.
Is the gold bull market over: A long-term perspective
Although gold prices have recently experienced a significant correction, opinions in the industry are not unanimous about whether this means the end of the gold bull market. In the short term, gold prices may continue to experience volatility. However, from a long-term perspective, gold’s safe-haven properties and the downward pressure faced by the global economy provide support for gold prices. If US bond yields decline, gold prices are expected to reach new highs. At the same time, the escalation of geopolitical risks may also provide new momentum for gold’s rise.
Continuous central bank gold buying and the expansion of US dollar debt will continue to support gold prices in the medium to long term. In addition, as a hedging tool, the value of gold becomes more prominent in the current backdrop of increased global economic uncertainty. When faced with gold price fluctuations, investors should remain rational and focus on the allocation value of gold under multiple factors such as macroeconomics, monetary policy, and geopolitical risks.
4E Platform – The ideal choice for bulk gold investment
Against this backdrop, the 4E platform provides an ideal choice for bulk gold investment. In the 4E commodity trading area, investors can trade a variety of bulk commodities, including gold, silver, precious metals, and energy assets.
The platform supports a two-way trading mechanism, allowing investors to go long or short based on market trends, providing profit opportunities regardless of price fluctuations.
The platform offers leverage ratios of 25-300 times, with the smallest trading unit for gold being 0.01 lots and a margin of less than $10. This high leverage, low threshold design allows more ordinary investors to access professional financial markets, enter the market easily starting with small trades, gradually accumulate experience and profits, and effectively utilize funds in price fluctuations, providing more opportunities for profitability.
In conclusion, although the gold market faces short-term pressure, from a long-term investment perspective, gold remains an asset worth considering. Through the 4E platform, investors can better grasp opportunities in the gold market, maintain rationality in market volatility, and macroeconomic trends and changes in monetary policy will help make wiser investment decisions.
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