Gold Rush: Fed Rate Cut Sparks Frenzy as ‘Little Golden Beans’ Lure in Desperate Investors
Gold Prices Soar as US Federal Reserve Prepares to Cut Interest Rates
Reported by Wang Jialin and Li Yihan in New Taipei City
The US Federal Reserve’s announcement to cut interest rates has caused a stir in the market, leading to a weakening of the US dollar and a surge in gold prices. As of Monday, gold was quoted at US$2,582 per ounce, with spot gold hitting US$2,589 and one tael costing 103,300 yuan.
The fourth-generation owner of a century-old silver house noted that prices have been rising almost every day since the beginning of the year, with many office workers investing in gold like crazy.
Flower-shaped gold, necklaces, bracelets, rings, and earrings are among the popular items, with prices ranging from 273,000 yuan plus labor costs. In comparison, the same items cost 219,000 yuan in early March this year.
For those who cannot afford gold jewelry and gold bars, thousands of degrees of heat melt gold nuggets into tiny gold beans. The money house even sells it for 8 Some percentile weights are all sold, and you can save gold with 1,000 yuan a month.
Xu Zhibin, a banker, noted that if you save one yuan, you will get one tael if you save ten yuan. In the past four years, the price of gold has increased by 30% to 35%.
Gold futures analyst Huang Yiting said that assuming the Federal Reserve’s interest rate decision meeting only cuts interest rates by 1 point, instead of the 2 points that the current market strongly expects, there is a possibility of a short-term correction in gold prices.
However, Huang also noted that the US should take continuous measures to cut interest rates, and the Bank of Japan has a relatively weak need to raise interest rates, which means gold still has high points to look forward to.