[Finance] AI's Strength Attracts Gold Investment Funds, Jewelry Store Owners: Signs of Return Recently
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bellala 央廣＠＠3h ago
After international gold prices hit a historic high of $5,598 per ounce in January this year, funds were withdrawn from gold investments due to the US-Iran conflict, growing expectations of Federal Reserve interest rate hikes, and the magnetic effect of AI-related themes. Gold prices recently faced a battle to defend the $4,000 mark. However, domestic jewelry store owners point out that they have recently observed some customers moving profits from the stock market to purchase physical gold, showing optimism for the long-term trend. #Reported by reporter Chen Lin-hsing-hung#
International gold prices have fallen from their January high. By early June, the decline had reached as high as 28%. After the US and Iran reached a preliminary peace agreement, oil prices fell, and inflation concerns eased, leading to reduced market worries about Federal Reserve rate hikes this year. Gold prices also climbed from their low of $4,023 per ounce during this period to around $4,325.
Cathay Bank Chief Economist Lin Chi-chao believes that in addition to international geopolitics and the Federal Reserve's actions, observations over the past few months show that market funds have been heavily invested in AI-related stocks, crowding out investment in gold. However, this does not indicate a change in gold's fundamentals. Lin Chi-chao said: "(Original sound) As the end of the year approaches, the US dollar may depreciate somewhat, with room for devaluation, and interest rates will likely not be as high as in the past month, which is conducive to gold price increases. Of course, the most fundamental factor is whether AI funds will shift to gold, but in the short term, it appears to be relatively low. I think the main reason is that capital momentum is currently concentrated in AI."
Shi Wen-hsin, Vice Chairman of the Taipei Gold and Silver Jewelry Association, pointed out that Taiwan is a hub for the AI supply chain. Many of his clients, after the stock market heated up in March, shifted their gold investments into Taiwanese stocks. However, recently, some clients, after profiting from the stock market, have reinvested some of their funds back into gold. Shi Wen-hsin said: "(Original sound) Funds that have profited in the stock market will return, because after all, global trust in the US dollar is not very high. Unlike in the past when trust in the US dollar was very high, the proportion of gold actually sold by central banks in the past six months is still very small."
According to a recent gold report by Bank of Taiwan, citing the 2026 Central Bank Gold Reserves Survey released by the World Gold Council, 89% of surveyed reserve managers expect global central banks to increase their gold reserves in the coming year, with 45% stating their central bank will increase holdings. Additionally, 74% expect the US dollar's share in global reserves to decline. The survey results indicate that central banks are viewing gold as a core strategic asset, not only for diversifying reserve risks but also as a hedge against inflation and geopolitical uncertainty, maintaining strong demand for gold. (Editor: Hsu Chia-yuan)
Source Link: https://www.rti.org.tw/news?uid=3&pid=215240
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