Hong Kong Stock Concept Tracking | Gold prices continue to hit historical highs, institutions optimistic about Fed rate cuts and future forecasts (with concept stocks)
The price of gold continues to rise, with COMEX December gold futures rising to $2608.40 per ounce, driven by expectations of a Fed rate cut. Analysts expect the Fed to cut rates by 50 basis points at this week's meeting, which is favorable for gold. Global physical gold ETFs have seen continuous inflows for four months. Goldman Sachs predicts that the Fed will cut rates by 25 basis points and continue to do so in November and December. Macquarie has raised its gold price forecast, expecting the price to reach $2600 per ounce in the first quarter of next year and potentially soar to $3000. Related companies include Zijin Mining, SD GOLD, and others
COMEX gold futures for December rose 1.08% at the close, to $2608.40 per ounce, with a cumulative increase of 3.31% last week.
Gold edged up slightly during the early Asian trading session as the US dollar weakened moderately.
Analysts from the research department of Deutsche Bank pointed out in a recent research report that another driving factor is the significant increase in market expectations for a Fed rate cut since late last week. These analysts noted that federal funds rate futures indicate a 45% probability of a 50 basis point rate cut at this week's meeting by the Fed. Rate cuts are generally favorable for the interest-free precious metal.
Spot gold rose by 0.1% to $2,580.17 per ounce.
The World Gold Council stated that global physically-backed gold ETFs saw inflows for the fourth consecutive month in August.
Goldman Sachs analysts reiterated their expectation for a 25 basis point rate cut by the Fed next week, with further cuts expected at the remaining meetings this year (in November and December).
Ole Hansen, Head of Commodity Strategy at Saxo Bank, mentioned that geopolitical risks, fiscal concerns, and potential changes in monetary policy, especially after the US presidential election, collectively provide bullish reasons for gold as a hard asset.
Macquarie Bank in Australia raised its gold price forecast this week, now expecting the quarterly average peak price in the first quarter of next year to reach $2600 per ounce, with a potential surge to $3000.
Companies related to gold and precious metals:
Zijin Mining (02899), SD GOLD (01787), Zhaojin Mining (01818), Lingbao Gold (03330), China Gold International (02099), and Lao Pu Gold (06181), among others