Report: The price of gold is expected to hit a new record high next quarter, but the upward trend may be difficult to sustain.

Metals Focus has released the "November 2024 Precious Metals Monthly Report". The report points out that the drop in gold prices after the results of the US presidential election were mainly due to investors lowering their expectations of interest rate cuts (especially those for 2025), leading to a sharp increase in the US dollar and US bond yields. Against the backdrop of increased uncertainty in the US election results, some tactical gold investors have decided to cash in their profits. It is expected that gold prices will hit a new historical high in the next quarter, but due to many positive factors already being reflected in gold prices, the upward trend in gold prices may be difficult to continue. The report mentions that gold prices continued to rise in October, hitting a new historical high within the month, reaching a peak of $2790 per ounce on October 31st. After the news of Trump's victory, gold prices fell by $100 in a single day on November 6th, dropping to around $2650 per ounce. At the time of writing the report, gold prices had regained some ground, trading near $2700 per ounce. Metals Focus stated that although the volatility of gold prices may further increase in the near term, factors such as ongoing geopolitical tensions, a significant increase in US debt levels, and the threat of an escalation of trade wars during Trump's second term should continue to support gold investments, making gold particularly attractive to medium and long-term investors. Given that Trump plans to cut taxes and reduce government regulations, it is expected that the US stock market will continue to rise. Therefore, investors still need to pursue portfolio diversification, which may drive gold investments. Metals Focus predicts that global central banks will continue to buy gold in large quantities in 2025, providing important support to gold prices. Although the pace of buying slowed down in the third quarter of this year, the increase in gold purchases by central banks in Eastern European countries means that official net purchases are still significantly higher than historical averages. Additionally, even if the pace of interest rate cuts by the Federal Reserve may slow down, further monetary policy easing in 2025 can still be expected. This will limit the upside of the US dollar and US bond yields, meaning that the opportunity cost of holding gold will decrease.