Gold Prices Soar Above $4,800 Per Ounce
Gold prices surged on Wednesday, reaching a new record above $4,800 per ounce. The precious metal’s upward trend continues, fueled by heightened demand for safe-haven investments amidst global uncertainty. Prices have risen by more than 10 percent this month, gaining over $480. This growth follows geopolitical risks and ongoing tariff threats from the United States, both of which have driven demand for gold.
Gold Jewelry Prices Rise
As gold prices climb, the domestic jewelry market reflects this trend. Several brands have raised their prices, bringing them to near-record highs. For instance, 24k gold jewelry prices at Chow Sangsang reached 1,495 yuan per gram, up from 1,454 yuan the day before. Similarly, Lao Miao Gold increased its prices to 1,493 yuan per gram from 1,455 yuan.
Financial Institutions Maintain Optimism for Gold
Many financial institutions remain bullish about gold’s prospects. Citigroup predicts that gold could approach $5,000 per ounce in the next three months, assuming a positive market scenario. Moreover, central banks worldwide continue to show strong demand for gold, which further supports the price surge.
China’s central bank has been aggressively increasing its gold reserves. As of December, China’s reserves totaled 74.15 million ounces, up by 30,000 ounces from the previous month. This marks the 14th consecutive month of growth for China’s gold reserves.
China’s Gold Reserves Keep Growing
The People’s Bank of China has steadily increased its gold holdings. By December, China’s gold reserves grew to 74.15 million ounces. This increase reflects China’s ongoing strategy to strengthen its foreign exchange reserves. Guan Tao, chief economist at Bank of China International, stated that the share of gold in China’s reserves reached a record 9.51 percent by December. This rise is largely driven by global geopolitical instability and China’s economic policies encouraging further gold accumulation.
Geopolitical Risks Push Gold Prices Higher
The recent surge in gold prices is primarily due to escalating geopolitical risks and political instability in the United States. According to Li Yuefeng, a researcher at the Beijing Gold Economy Development Research Center, concerns over U.S. tariffs on Greenland and the Federal Reserve’s economic policies have pushed gold prices higher. As these factors intensify, gold prices are nearing the $5,000 per ounce level, and a breakthrough above this threshold could trigger a broader rally in the market.
Gold Could Reach $6,000 to $8,000 by 2026
Looking ahead, experts predict that gold could reach $6,000 to $8,000 per ounce by 2026. This rise is expected to be driven by inflation concerns, political instability, and shifts in global monetary policies. With geopolitical tensions persisting and central banks adjusting their monetary policies, gold is likely to remain a safe-haven investment, which should further fuel its price growth.
