International Gold Price Reaches Record High: Causes and Outlook

International Gold Price Reaches Record High and Background

Increased Gold Demand
- Global gold demand recorded an all-time high.
- Increased gold purchases, especially by central banks and individual investors.
- Gold demand is expected to increase further in 2024 compared to the previous year.
Increased Macroeconomic Uncertainty
- OECD and IMF reports also emphasize global economic uncertainty.
- Factors include the US-China trade war, geopolitical risks, and global economic slowdown.
- Strengthening preference for safe assets (gold, dollar) in the asset market.
Escalation of US-China Trade War

On February 4, 2025, the United States announced the imposition of additional tariffs on China.
Resulting retaliatory tariffs and non-tariff barriers by China.
Prolongation of such conflicts may amplify market anxiety.

Trend of increasing gold holdings by central banks worldwide.
Gold holding rates of major countries:
- United States (74.1%), Germany (73.5%), France (71%)
- China (5.36%), South Korea (2.09%)
Continued gold purchases, especially by emerging countries like China and India.

Both the Chinese central bank and individual investors are increasing gold holdings.
Reasons include Chinese economic uncertainty and a slowdown in the real estate market.
Increased preference for gold as an alternative asset due to strengthened regulations on dollar holdings.

Positive Factors
- Escalation of the US-China trade war, increased geopolitical risks
- Continued concerns about a global economic recession
- Continuous gold purchases by central banks
- Strengthening preference for safe assets
Negative Factors
- If the US Federal Reserve holds Bitcoin as a strategic asset, gold sales may occur.
- Impact of US Federal Reserve interest rate fluctuations on gold prices
- Changes in market liquidity

The gold price is likely to increase further in 2025.
Factors include the deepening US-China trade conflict and intensified global economic uncertainty.
However, if the US Federal Reserve changes its Bitcoin holding policy, there is a possibility of a gold price decline.

The international gold price has reached an all-time high, surpassing $2,900.
The main reasons are increased gold demand from central banks and individuals, and global economic uncertainty.
The US-China trade war and economic slowdown are driving up gold prices.
China is expanding its gold holdings amid domestic and external uncertainties.
The gold price is likely to increase further in the future if uncertainty persists.
However, a change in the US Federal Reserve's Bitcoin holding policy could adjust gold prices.

"Gold Price Outlook, Analysis of Possible Additional Increase in 2025"
🔗 https://nextgeninsight.net/?s=gold%EA%B0%80%EA%B2%A9
"US-China Trade War and Deepening Global Economic Uncertainty"
🔗 https://nextgeninsight.net/?s=%EB%AF%B8%EC%A4%91%EB%AC%B4%EC%97%AD

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The U.S. stock market closed mixed amidst earnings announcements and easing concerns about Trump's tariff policies.
As the three major indexes showed divergent trends, some companies saw gains while others declined.

Despite fourth-quarter earnings exceeding market expectations, the stock price fell by more than 3% as the lack of growth prospects for license revenue this year was highlighted.

Despite outperforming expectations, the stock fell by more than 3% due to profit-taking.

Earnings per share: $1.86
Revenue: $177.9 billion (exceeded market expectations)
However, future guidance fell short of expectations, leading to a decline of more than 3% in after-hours trading.
Cloud service AWS revenue increased by 19% ($28.88 billion).

Data analytics software company Palantir's stock price surged by 10%.
Fourth-quarter revenue: Increased by 36% year-over-year ($75.1 billion).
Attention is being drawn due to military and civilian corporate expansion, and Wall Street investment banks are also raising target stock prices.

The stock price has recently rebounded to $128.
Google's announcement of a $75 billion capital expenditure plan related to AI is a major driver.
The continued investment of funds in AI servers by Big Tech companies may lead to further gains.

Investment demand shifted to NVIDIA due to the lack of guidance related to AI revenue.

Bitcoin fell below the $100,000 level.
Despite the expansion of recognition of virtual assets by the financial sector, short-term volatility has increased.
As the possibility of the Trump administration adopting Bitcoin as a national power asset has been mentioned, the future outlook is positive.

U.S. stocks closed mixed, with semiconductor and technology stocks experiencing increased volatility after earnings announcements.
Amazon and Palantir's performance is positive, but Tesla fell due to a decrease in sales.
NVIDIA and AI-related stocks have a positive outlook due to increased Big Tech investment.
Bitcoin is volatile, but there is a possibility of an increase due to Trump administration policy issues.
Pay attention to the large volatility due to the performance and events of other individual stocks.