Gold Prices Soar and Retreat: DBS Bank Optimistic Outlook – Latest News & Updates

Gold prices go back after going up! The deepening geopolitical tensions in the Middle East pushed the price of gold, which reached US$2,407.8 per ounce on April 16 and fell back to US$2,372 this morning. Following Citibank’s optimistic view of gold prices at US$3,000, DBS Bank held its second quarter investment outlook meeting this afternoon (17th) and was asked if gold is overheated? Chen Yujia, vice president of Wealth Management Investment Consulting Division, said that he is still optimistic this morning, the latest one-year target price was raised from the original US $ 2,250 to US $ 2,500 Although not as high as other banks, the trend is still positive.

Further reading:Gold has risen so much that the newlyweds are about to cry! Silver and gold prices rose to 9630 again, approaching the 10,000 yuan mark

After the price of gold rose above, DBS Bank came back and was still “on the long side” and changed its target price to US$2,500. Photo/taken from Getty Images (Anthony Bradshaw via Getty Images)

Federal Reserve officials were relatively hawkish last week, dampening market expectations for an interest rate cut this year signaled yesterday, and have been volatile Later, prices fell London spot gold to $2,372, showing a correction after rising.

DBS Silver raises gold target price from US$2,250 to US$2,500

DBS Bank (Taiwan) held an online press conference for the “Second Quarter of 2024 Investment Outlook” this afternoon. In terms of future performance, it is predicted that gold purchases will continue to be supported by central banks to general investors, including retail investors, especially under ounce geopolitics, and the price in the next 12 months is increased to US $ 2,500.

When asked if gold has risen above $2,400, is it too hot? Any advice on investment activity? Chen Yujia said that the Gold Association believes that the total stock supply is limited, and the current environment is relatively favorable for gold, and there is still a chance to perform, and he is still optimistic.

He said that the gold reserve policies of various central banks have spread to gold For example, China has continued to increase its positions, accounting for almost 5% of its foreign reserves.

Gold ETF retail buying has not yet returned, but gold nuggets are rising

As for general investors, Chen Yujia said that although gold ETF purchases have not yet returned, demand for gold bars and gold coins has increased. As soon as future ETF purchases return, it will provide fundamental support for the rise continuous in gold.

In particular, he reminded the two main gold antagonists that, despite the recent strength of the US dollar and the rise in government bond yields, which gold has not fallen in the past, it should for it to be negatively correlated with the US dollar and government bonds, showing that the market has gotten used to the negative correlation and will continue to buy it when needed, when geopolitical wars heating up, investors still consider it a reliable asset bond yield for information Once the US dollar weakens or yields fall in the future, it may continue to ‘support a gold movement.

Feed rate cut forecast reduced from 4% to 2%

In addition, Chen Yujia said that the Federal Reserve is expected to cut interest rates in the second half of the year (interest rates are going down), which will further support gold purchases. He also said that although DBS’s target price for gold is not as high as that of banks such as Citigroup, just below US$2,500, the trend is still positive. Due to concerns about recent economic data and oil prices pushing up inflation to remain high, DBS Bank is currently forecasting that the Federal Reserve will reduce interest rate increases in the second half of the year from the first four times of four times to two times of two. times, and the rate cut is not expected until the third quarter. As for 2025, it is estimated that it will fall another 4 sizes, and that each season will fall by 1 size.

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• Yahoo Finance Special Correspondent Ye Yiru: With more than 20 years of experience in mainstream financial media, from the Web1.0 bubble in 2000 to the Meta Yuanverse Web3.0, he has seen the rise and fall of Taiwan’s large and small business organizations, and has get to know five international financial organizations. crisis We believe that finance is life and that it is everywhere No matter how difficult financial knowledge is, we should explain it in a simple way. Everyone, young and old, should manage money If you don’t manage money, money won’t care about you.