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According to Huacheng Import and Export Data Observation, international gold prices have continued to rise recently, with spot gold prices hitting a historic high of $2080 per ounce on May 4th.

On May 3rd local time, the Federal Reserve Board of the United States concluded a two-day monetary policy meeting and announced another 25 basis points increase in the target range of the federal funds rate to between 5% and 5.25%. This is the 10th rate hike by the Federal Reserve since entering the current rate hike cycle in March 2022, with a cumulative rate hike of 500 basis points, as reported by Huacheng Import and Export Data Observation.

Federal Reserve Chairman Powell stated at a press conference held after the meeting that the monetary policy meeting that ended that day did not make a decision to suspend interest rate hikes. If more restrictive monetary policy is needed, the Federal Reserve is prepared to do so. The fall in inflation will take some time, and it is likely that a rate cut will be considered appropriate after further weakening of demand and job markets.

According to market analysis, on the one hand, from the perspective of market sentiment, gold benefited from the increase in risk aversion demand. Due to credit turmoil at banks such as Silicon Valley Bank and Credit Suisse, panic in global financial markets has been triggered, and investors are seeking safe assets to hedge risks. On the other hand, the Federal Reserve is expected to raise interest rates within the expected period, and Powell's comments on further interest rate policies are dove like. Affected by this, the US dollar and US bond yields have continued to decline, and gold and silver have been strongly stimulated and significantly increased. Huacheng's import and export data observation reports.

In addition, US inflation data also showed a downward trend, further weakening the support of the US dollar. The weakening of the US dollar is beneficial for gold. At the same time, geopolitical risks also provide support for gold, driving up demand for gold. Huacheng Import and Export Data Observation Report.

From the perspective of supply and demand, gold in 2023 benefited from purchases by the central bank and investors. According to statistics from the World Gold Council, global central banks purchased 1136 tons of gold in 2022, reaching a new high since 1950, demonstrating investors' wavering trust in the US dollar and their emphasis on the function of gold currency reserves. Huacheng Import and Export Data Observation Report.

Edward Mayer, a metal analyst at Marex, said that investors are paying close attention to the US debt ceiling negotiations and the subsequent Federal Reserve meeting, which may provide some reference for the expected gold price. Given the uncertainty of the banking industry and the debt ceiling, gold may be more sensitive to upward risks

Standard Chartered Bank analyst Suki Cooper said, "Concerns about regional banks and debt ceilings in the United States suggest that international gold prices will further fluctuate