World Gold Council report indicates that gold prices will continue to weaken in the future

According to a report by Juan Carlos Artigas, director of global research at the World Gold Council, the U.S. dollar continued to hold down gold prices, with gold futures falling to a two-and-a-half-year low this week, and the U.S. dollar index hit a new high in more than 20 years. However, gold prices have fallen about 10% so far this year, still outperforming the stock and bond markets, especially if the dollar index has risen about 20% this year and the trend of bond yields, gold prices should theoretically fall. about 30%.

The report pointed out that under the pressure of the Fed's continued interest rate hikes, gold prices will still be under pressure, but it is expected to find support before the end of the year, and believes that the Fed's interest rate hike cycle has come to an end. The report said that if the Fed's rate hike is slowed, gold prices are expected to remain briefly; other central banks outside the United States will also take more interest rate hikes to fight inflation and defend the exchange rate, which is expected to offset some of the dollar. The strength of the gold price found support.

The report said that the global economic recession is also a risk that cannot be ignored, which will boost the safe-haven demand for gold; more central banks are also increasing their gold reserves. In August, the Uzbekistan central bank's gold reserves increased by 8.7 metric tons, which is already Increase for the third consecutive month. The Organization for Economic Cooperation and Development (OECD) revised its 2023 global economic growth forecast from 2.8% to 2.2% in a report on the 26th, due to concerns about inflation and the impact of the energy crisis. % was revised down to just 0.3%.