The discussion about the future price movement of gold has indeed sparked the curiosity of many investors, and this report attempts to unveil the clues behind the recent fluctuations in the gold market. While the fraudulent incidents involving some banks in the United States have caused quite a stir, the further escalation of the China-U.S. trade war is also driving up market risk aversion, all of which have brought the gold price close to 4400 dollars per ounce. Moreover, the market's expectation of interest rate cuts has contributed to the continued rise in gold prices. Many are puzzled: can gold prices really continue to rise? Or is it time to take profits now?

Analyze the three main drivers pushing gold prices up, including the uncertainty caused by a series of tariff policies after Trump's inauguration, market expectations for a Federal Reserve rate cut, and the active gold purchases by central banks around the world, revealing a complex background for this market trend. Recently, major central banks have continued to increase their gold holdings, especially the People's Bank of China. According to data from the World Gold Council, global central banks net purchased as much as 123 tons of gold in the first half of 2025. This indicates that the global demand for diversification away from dollar assets is driving gold prices upward.

Major financial institutions are also optimistic about future gold prices. For instance, Bank of America is bullish on the precious metals market, setting a target gold price of $5,000 per ounce for 2026. Goldman Sachs has also raised its target price to $4,900, believing that strong demand from central banks and the private sector will continue to support gold prices. Such predictions undoubtedly make many investors consider whether to enter the market on dips.

For ordinary investors, whether you are trading short-term or long-term, or incorporating gold into your investment portfolio, understanding the logic behind the current market changes is crucial. Short-term trading requires experience, and one must learn to handle market fluctuations calmly when they arise unexpectedly. Although the overall trend for long-term holding of gold may be bullish, one must be mentally prepared for fluctuations in between. Additionally, diversifying your investment portfolio is key to stabilizing wealth.

Remember: the fluctuation of gold prices is significant, and you need to carefully consider how to diversify your investments and manage risks. Sometimes, in the investment market, a wise choice is more valuable than blindly following trends. Although gold prices are expected to continue rising, do not gamble too much money on a single bet. What do you think about this investment strategy? Do you have other experiences to share? Feel free to leave a message to chat.