Sino-Singapore Jingwei Client, August 18th, on the 18th, London spot gold, which spurred gains a week ago, once again stood at the US$2,000/oz mark. As of press time, it was reported at US$2002.60 per ounce, up 0.89%.

　　Spot gold price movements in London. Source: Wind

　　In the past month, the price of gold has risen like a rainbow, soaring all the way. On August 4, spot gold soared by more than 2%, hitting the 2,000 USD/ounce mark in one fell swoop, and closed at 2017.50 USD/ounce on the same day, reaching the highest intraday around 2020 yuan. Since then, spot gold rose for two consecutive days and continued to record highs, reaching a historical high of US$2075.14 per ounce in intraday trading on August 7.

　　On the other hand, futures gold prices are also rising simultaneously. On August 7, the COMEX December gold futures price once touched up to around US$2,089 per ounce.

　　However, after the crazy rise, both spot gold and futures gold have staged a quotation of taking back their gains. On the day when a record high was reached in the intraday market, the prices of spot gold and futures gold both fell, falling by more than 1%. On August 11, spot gold dropped by 6.07%. It fell more than US$110 in a single day, and fell below the US$2,000/oz mark to report at US$1911.40/oz.

　　According to analysis by industry insiders, the increased selling pressure caused by the rapid rise of gold in the early stage, coupled with the rebound of the US dollar index and the sell-off of the largest gold ETF, has become the main reason for the technical correction of gold prices. However, the loose liquidity of global central banks and the uncertainty of geopolitics are still supporting factors for gold prices in the medium and long term.

　　Zhao Xiangbin, chief strategist of BRICS Huitong, pointed out that the world's largest gold fund is reducing its holdings, which is a relatively big negative factor. Zhao Xiangbin also said that in the short-term, there is adjustment demand for gold, which may fall, but the medium- and long-term trend is still upward. It may reach US$2200/ounce within the year, and it may reach US$3000/ounce in the next two to three years.

　　At present, in the past few trading days alone, spot gold has returned to US$2,000/oz. As of the press release, it was reported at US$2002.60/oz, up 0.89%. On the other hand, in the early morning of the 18th Beijing time, the settlement price of COMEX December gold futures rose by 48.9 US dollars to close at US$ 1998.7 per ounce, an increase of 2.51%; it is now reported at US$ 2007 per ounce, an increase of 0.42%.

　　Looking ahead, Wanlian Securities said that there is still room for upside in gold prices in the future. First, the central banks of various countries still maintain monetary easing. The leaders of EU countries have reached an agreement on a "recovery fund" with a total amount of up to 750 billion euros and the EU budget for the next seven years; the United States is discussing a fourth round of economic rescue plans, with a scale of about 10,000. One hundred million U.S. dollars. Second, market risk aversion may continue to heat up. Third, the prospects for economic recovery in the United States are not clear, and the dollar is still expected to depreciate under loose monetary policy. (Zhongxin Jingwei APP)

(The opinions in the article are for reference only and do not constitute investment advice. Investment is risky and you need to be cautious when entering the market.)