It can be seen that yesterday’s surge in gold prices was the second surge in nearly a week, with a one-day surge of more than $23. Last Wednesday (July 12), the price of gold rose by more than 1.4%, with a one-day surge of more than $25.

Even if the price of gold has surged over $20 twice a day in the past week, it is insignificant compared with the cumulative increase in the price of gold in the past year.

A year ago, at the end of September 2022, the lowest price of gold was still US$1618.3, and the highest price reached US$2085.4 in early May of this year. During this period, the price of gold rose by more than US$467, an increase of more than 28.86%!

You know, this thing is a hard currency in the world, and its annual increase of over 28% is really quite a lot.

The main reason why the international gold price has risen in the past year is related to the inflation rate in the United States and the monetary strategy of the Federal Reserve.

The intensity of this round of interest rate hikes by the Federal Reserve is beyond the imagination of many people. The latest data showed that the US core inflation rate fell to 4.6%. The absolute value of this figure seems to be relatively high, but in fact it has come down from a high level, which means that the downward trend of the US inflation rate has emerged.

Although the Federal Reserve hinted that it will raise interest rates several times this year, the market expects that even if it raises interest rates, the rate will not be large. Moreover, the market has already begun to expect the arrival of the subsequent interest rate cut cycle a few months ago.

It is under such expectations that gold has shown an overall upward trend.