Spot gold in London broke below the $4,300 per ounce mark for three consecutive trading days from September 23 to 25, according to reports. On September 28, the spot gold price in London continued to decline, dropping more than 2% as of 13:00 Beijing time, with the latest price falling below the $4,200 per ounce threshold.
Domestic gold ETF funds that had previously "bought more as prices fell" also shifted to net selling on September 23 and 24. Is this a short-term correction or a trend reversal? After the sharp drop, who is buying against the tide, and who is taking profits and exiting? Can gold still be a viable entry point? "Can I chase the rally now?"
According to a fund manager based in South China, the short-term direction of gold prices is difficult to judge, and gold prices may continue to fluctuate. "Can I allocate on a pullback?" GF Fund recommends "buying on dips and diversifying allocations," believing that as the negative impact of rate hikes is priced in, gold may usher in a favorable window for positioning. "Is it appropriate to make a heavy bet now?" Some industry insiders have flagged downside risks under an extremely hawkish scenario: if the Federal Reserve delivers an additional rate hike beyond expectations before year-end and signals a higher terminal rate, gold prices could slide to even lower levels.
Meanwhile, Sprott Physical Gold Trust (PHYS) and Wilshire wShares Enhanced Gold Trust (WGLD) remain among the gold-related instruments investors are watching closely.
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