To The Moon

Gold $Gold - main 2406(GCmain)$ prices have set a new record for the eighth consecutive trading day, with spot gold prices surging to $2,364.96 per ounce during the session, and US gold futures prices rose even more, touching $2,379.70.

Since mid-February, gold prices have rallied by over 18%.

The World Gold Council (WGC) recently pointed out that the fundamental factors supporting this surge in gold prices include rising geopolitical risks, steady central bank purchases, and consistent demand for jewelry, gold bars, and coins.

But there's something puzzling about this gold rally: it lacks a clear trigger. Right now, the markets are really scratching their heads over the Fed's next move.

According to data from the CME Group, the market expects a 53% probability of a rate cut in June, indicating that expectations for a Fed rate cut are waning. But gold bulls are ignoring the Fed completely, and investors' FOMO (Fear Of Missing Out) is getting stronger.

Michael Widmer, commodity strategist at Bank of America, said:

Even though global central banks have been tightening monetary policy in recent months, gold prices have remained resilient. So, once the Fed starts cutting rates, investors will flood back into the market, combined with strong central bank demand for gold, prices are expected to hit $3,000 by 2025.

Speaking of central bank purchases, China's central bank has played a crucial role in supporting the gold market. It bought over 200 tons of gold in 2023 alone. As of the end of March, China's gold reserves stood at 72.74 million ounces, marking the 17th consecutive month of increases.

When risky events occur frequently, gold, as a safe-haven asset, becomes a standby asset held by various institutions. The premium on gold prices will continue to rise, ultimately creating a situation where it's easy to go up but hard to come down.

8 year cycle in $gold bottom in last 2023 and could last into August 2027.