Huili: Escalation in Middle East conflict, gold to challenge historical highs again this year, targeting $2800

Alex, senior strategist of Huili Fund's ETF business, shared his latest views on gold. He pointed out that the recent sharp rise in gold prices was mainly driven by geopolitical threats. Despite the strong non-farm payroll data just released by the United States and the expectation that the Federal Reserve will slow down its rate cuts in November, gold prices remain above $2650, reflecting the current influence of geopolitical factors more than interest rate changes. With signs of escalation in the Middle East conflict, gold will continue to benefit from a large amount of safe-haven buying, driving funds into the gold market. It is expected that gold prices will once again challenge historical highs within the year, reaching up to $2800. In addition, as the U.S. presidential election approaches and the two parties are neck and neck in the polls, the uncertainty of the election results will continue to affect traditional capital markets. Investors should use precious metals and diversified asset portfolios with low correlation to risk assets to cope with market volatility. It is expected that the generous fiscal policies after the election will increase the U.S. budget deficit, leading to long-term inflationary pressures. The reckless campaign promises of both parties are expected to enhance the attractiveness of gold as a safe-haven and anti-inflation asset, which will in the long run help drive gold prices upwards