News Agency Beijing, October 28 Summary | International gold prices face downward pressure

Xinhua Agency reporter Liu Yifang

International gold prices continued to face downward pressure after the last week's sharp sales, and the New York gold futures price fell again below $4,000 per ounce in the 28th quarter. Some market analysts believe that despite the long-term view of the gold market, the price of gold could fall further in the short term.

Market expectations for the easing of international economic and trade relations have increased this week, and this optimism has weakened the avoidance demand for gold.On 27 December, the most active December gold futures market in the New York Commodities Exchange fell by about 2.9 percent to $4019.70.

Some market analysts believe that due to the weakening of short-term drivers, gold market price adjustments may continue for a period of time. The continued sharp rise in gold prices in the previous period has led to increased profit returns in investors, market concerns about international trade tensions have eased, and investor risk preference has recovered are the main reasons for the fall in gold prices.

Market analysts at Citigroup believe that the market's expectation that the United States will reach a trade agreement with other countries and the possible end of the "shutdown" of the U.S. government may put downward pressure on the price of gold in the next few days to weeks, and it is not ruled out that it will fall back to the level of $3,800 in the next three months.

John Reed, market analyst at the World Gold Association, noted that central bank demand for gold in economies is not as strong as before, and a deeper market adjustment may give professional traders some breathing space.

Since late August, the international gold price has opened upward spaces after months of settlement, rising from around $3,300 per ounce to more than $4,000. On October 20, the international gold price once climbed to a historic high of $4,381.21 per ounce. Geopolitical changes and increased global economic uncertainty, Federal Reserve (Fed) interest rate cuts, global central bank purchases, etc., are important drivers of this round of gold strength.

Despite recent price rebounds, international gold prices have risen by more than 50 percent since this year.Some market analysts believe that ongoing economic uncertainty remains the main driving factor for international gold prices, and this factor still exists.