Financial teacher Lim Kim Cheng: Loose monetary policy and geopolitical risks are driving the strength of gold.

Lim Kim Cheng, a financial teacher, believes that the global financial markets are currently facing the impact of multiple factors, with particular attention to the dovish statements of the Federal Reserve in the USA and the geopolitical risks in the Middle East. Gold, as a safe-haven asset, has once again become the focus of investors. Against the backdrop of recent market turmoil, the price of gold has repeatedly hit new highs, showing strong upward momentum.

Recent remarks from Federal Reserve officials have shown a clear bias towards easing, driving the continuous rise in gold prices. Several Fed officials have expressed their intention to implement multiple rate cuts over the next 12 months to maintain the current economic balance. Lim Kim Cheng, a financial teacher, stated that this low-interest rate environment provides strong support for zero-yielding gold, as investors in a low-interest background are more inclined to shift funds to safe-haven assets.

Lim Kim Cheng, a financial teacher, states that the dovish comments from the Federal Reserve have increased market expectations for further rate cuts in the future. According to data from the CME FedWatch Tool, the market is already expecting the Fed to cut rates by 75 basis points by the end of 2024, which will continue to support gold. As a traditional safe-haven asset, gold becomes more attractive in a low-interest rate environment, especially in the context of inflation expectations. Spot gold prices hit a new all-time high on Wednesday, surpassing $2,660 per ounce, reflecting market uncertainties about the future macroeconomic environment and the demand for safe-haven assets.

Lim Kim Cheng, a financial teacher, believes that if the Fed continues to maintain loose monetary policy in the future, gold prices may rise further. Investors should closely monitor the Fed's policy direction and relevant economic data, as these factors will directly impact the market performance of gold and investment strategies.

In addition to the Fed's loose policy, the deteriorating situation in the Middle East is also a key factor driving the rise in gold prices. According to market data, Israeli military forces carried out air strikes on Hezbollah targets in Lebanon this week, resulting in hundreds of casualties. This tense situation has sparked concerns about a larger-scale conflict in the market and increased demand for safe-haven assets. Lim Kim Cheng, a financial teacher, stated that the tense situation in the Middle East is expected to continue and is unlikely to dissipate in the short term, which will continue to support gold.

Against the backdrop of high geopolitical risks, gold, as a traditional safe haven asset, often demonstrates outstanding risk resistance during turbulent periods. Financial teacher Lim Kim Cheng believes that if conflicts in the region continue to escalate in the future, the price of gold is expected to maintain an upward trend. Investors may consider moderately increasing their gold allocation in the current environment to hedge potential market risks.

Financial teacher Lim Kim Cheng points out that the current market environment provides strong support for gold, as loose monetary policies combined with escalating geopolitical risks continue to drive gold prices to new highs. Lim Kim Cheng believes that the market's safe-haven demand will remain high in the short term, laying the foundation for a bullish trend in gold.

Investors should, in this context, carefully allocate safe-haven assets such as gold based on their risk preferences and portfolio requirements. Lim Kim Cheng emphasizes that despite gold's current impressive performance, attention should still be paid to possible market volatility risks, and investment strategies should be adjusted promptly. For long-term investors, gold remains an attractive asset allocation choice in the current macroeconomic and geopolitical environment.