According to Zhao Shande, from a technical perspective, any pullback on the strong support level of $2300 can provide good buying opportunities for investors, reflecting the defensive power of gold.
Zhao Shande, the senior strategist of the ETF business of Hui Li Fund, said to Zhixin Finance app that geopolitical uncertainty and central bank demand have become the main driving forces of gold prices in recent times, and the bank continues to be bullish on gold performance in the second half of 2024. Even if expected gold prices will undergo moderate corrections every time they break through historical highs, from a technical perspective, any pullback on the strong support level of $2300 can provide good buying opportunities for investors, reflecting the defensive power of gold.
He said that the attack on US presidential candidate Trump has greatly increased his chances of being elected, and the bank expects to accelerate the reduction of interest rates and implementation of loose monetary policy by the Federal Reserve. The more aggressive US foreign policy may exacerbate global geopolitical uncertainty, and gold is expected to benefit from the safe-haven demand and the weakening of the US dollar. If the price of gold continues to skyrocket, it will once again challenge historical highs.
Zhao Shande stated that the complex geopolitical and financial environment has made gold more important than ever in national reserve management, and gold continues to be favored by central banks as reserve assets, and the holding level is being redistributed to more appropriate levels to cope with higher market crises and inflation risks.