thlsu.com.

Global markets are once again in turmoil, providing renewed momentum for the rise in gold prices. On October 15th, spot gold once again made a push towards new highs. As of 18:00 Beijing time, the price of spot gold had surged to $2,655.37 per ounce, and the price of physical gold on the Shanghai Gold Exchange also broke through 600 yuan per gram.

The world's largest gold ETF, SPDR, has seen its holdings reach a new high for this year, totaling 880.57 tons, with an increase of 6 tons since October.

Due to the continuous new highs in gold prices, several banks have raised the starting point for gold accumulation. On October 8th, China Everbright Bank announced that, in accordance with the relevant regulatory provisions of the gold accumulation business, to adapt to market changes, the bank will adjust its gold accumulation personal business. The starting investment amount for regular fixed-amount investments in China Everbright Bank's gold accumulation personal business has been adjusted from 600 yuan to 700 yuan, while the additional amount remains unchanged at multiples of 100 yuan.

Advertisement

Existing fixed investment agreements signed before the adjustment will continue to be executed without impact. New fixed investment agreements initiated after the adjustment must meet the bank's latest starting point requirements.

Before China Everbright Bank, banks such as Bank of China, China Construction Bank, China Merchants Bank, China Zheshang Bank, Industrial Bank, and Agricultural Bank of China have also successively raised the starting amount for gold accumulation. Most have adjusted from 600 yuan per gram to 700 yuan per gram.

Agricultural Bank of China's approach is somewhat unique. On September 18th, the bank announced that it would adjust the starting point for gold accumulation purchases to a floating method based on gold prices, becoming the first bank this year to link the starting point for gold accumulation purchases with gold prices.

The official website announcement shows that, to implement regulatory requirements and facilitate customers, the purchase starting point for Agricultural Bank of China's Gold Accumulation Plan No. 2, which is based on fixed amounts, will be adjusted to a floating method based on gold prices (the purchase price of Gold Accumulation Plan No. 2 during closing hours refers to the most recent valid quote), and the transaction increment unit remains unchanged at 10 yuan. This adjustment took effect after the end of trading on September 19th. Fixed investment contracts that had already taken effect before this adjustment are not affected.

Agricultural Bank of China stated that when customers apply for fixed investment, the fixed investment amount must be greater than or equal to the real-time purchase price of Gold Accumulation Plan No. 2 and meet the requirements of the fixed investment transaction increment unit (a multiple of 10). For example: if the purchase price of Gold Accumulation Plan No. 2 at the time of fixed investment is 565 yuan per gram, and the fixed investment transaction increment unit is 10 yuan, then the minimum amount that can be applied for fixed investment is 570 yuan.

Liu Youhua, Deputy Director of the Wealth Research Department of Paipai Network, said in an interview with a reporter that the Federal Reserve has officially entered the interest rate reduction channel, and international gold prices have been high and rising, continuously setting new historical highs. Many institutions have also raised their gold price outlook. This adjustment of the starting amount is greatly related to the significant rise in gold prices. Subsequently, other banks may follow suit.

Institutions have also raised their outlook for gold. In a report released on Wednesday (October 9th), UBS once again raised its gold price forecast, expecting the price of gold to approach $2,800 by the end of 2024 and to climb to $3,000 in 2025. This increase reflects the widespread demand for gold in the market, and there are no significant signs of selling pressure.UBS's optimistic outlook is supported by several macroeconomic factors. According to UBS, not only the Federal Reserve but also other central banks around the world are implementing monetary easing policies, which will create a favorable environment for gold purchases.

As a proponent of gold, Goldman Sachs analysts predicted in early September that the price of gold would reach $2,700 per ounce by 2025. Just one month later, Goldman Sachs market strategists looked to higher levels, predicting that by 2025, gold prices would climb to $2,900 per ounce.

Citi also expects gold prices to reach $3,000 per ounce by mid-2025.