Gold prices fluctuate at high levels, latest assessments from public and private funds

Recently, international gold prices have remained in a high-level oscillation. After experiencing a correction in September, gold prices rebounded on October 1, with spot gold once rising above $4,190 per ounce. Interviews with several public and private fund institutions revealed that after the Federal Reserve's rate hike was implemented, high interest rates and rising U.S. Treasury yields continued to weigh on gold, but gold prices still showed some resilience during the adjustment process. Regarding the short-term trend of gold, institutions remain generally cautious, as the high interest rate environment and subsequent changes in monetary policy remain important variables affecting gold prices. However, multiple interviewees believe that factors such as global central bank gold purchases, U.S. Treasury and dollar credit, geopolitical tensions, and diversification of reserve assets continue to support the medium- to long-term allocation demand for gold. After the earlier correction, institutions are paying more attention to when the pressure from high interest rates will ease and whether the medium- to long-term allocation logic for gold can further emerge.