Spot gold reached $3,750, setting a new all-time high

On September 23rd, the international spot gold market reached another milestone, with gold prices rising above $3,750 per ounce, setting a new all-time high.

This continued gold's strong performance since the third quarter of this year, reflecting the market's continued preference for safe-haven assets amidst multiple uncertainties in the global macroeconomy.

This round of gold price increases was primarily driven by the following factors: First, growing concerns about slowing growth in major global economies prompted investors to turn to gold as a risk-averse option. Second, central banks in many countries maintained accommodative monetary policies, keeping real interest rates low, increasing the appeal of gold as a non-interest-bearing asset.

Furthermore, escalating geopolitical tensions and the recent weakness of the US dollar index provided further upward momentum for dollar-denominated gold. Technically, after breaking through the key resistance level of $3,700 per ounce, gold saw a significant increase in buying momentum, forming a strong upward trend.

Several international investment banks subsequently raised their short-term gold price targets, believing that in the current market environment, gold prices are likely to continue to test the $3,800/ounce mark.

Analysts point out that the continued trend of global central banks increasing their gold reserves, coupled with continued active retail investor demand through channels such as gold ETFs, has provided solid support for gold prices. Although some technical indicators suggest that gold prices have entered overbought territory, bullish market sentiment remains strong in the absence of significant fundamental shifts.

Looking ahead, analysts believe that gold's long-term investment value remains significant, particularly against the backdrop of high global debt, fluctuating inflation expectations, and complex international trade relations. Gold's importance as a traditional safe-haven asset will be further enhanced.

However, some caution investors to be mindful of the potential short-term volatility risks associated with the Federal Reserve's policy shift. Overall, the gold market remains bullish, and future trends will continue to be closely influenced by global economic data, central bank policy signals, and geopolitical developments.