Finance teacher Lim Kim Cheng believes that the current global financial markets are facing the impact of multiple factors, with the dovish stance of the US Federal Reserve and geopolitical risks in the Middle East being particularly noteworthy. Gold, as a safe-haven asset, has once again become the focus of investors. Against the backdrop of recent market turbulence, the price of gold has repeatedly hit new highs, demonstrating strong upward momentum.
Fed's loose policy helps push gold prices to new highs.
Recent statements from Federal Reserve officials have shown a clear dovish bias, driving gold prices continuously higher. Several Fed officials have indicated multiple interest rate cuts in the next 12 months to maintain the current economic balance. Finance teacher Lim Kim Cheng points out that this low-interest rate environment provides strong support for gold, a zero-yield asset, as investors in a low-interest background are more inclined to shift funds to safe-haven assets.
Finance teacher Lim Kim Cheng said that the dovish comments from the Federal Reserve have increased market expectations of further rate cuts in the future. According to data from the CME FedWatch Tool, the market is already expecting a 75 basis point rate cut by the end of 2024, which will continue to support gold. Gold, as a traditional safe-haven asset, becomes even more attractive in periods of low interest rates, especially in environments accompanied by inflation expectations. The spot gold price hit a new historic high on Wednesday, breaking $2...

CHINESE STOCK MARKETS - Resurgence ahead ?
1) Chinese stock market valuations are at decadal lows at just 7x Forward earnings (Image source - Bloomberg)
2) At the same time, short positions are at all time highs in Chinese equities (Image source - Macro Charts)
3) Investors are throwing in the towel and ETFs are excluding China, just when at its actually the best time to start investing gradually in Chinese/Hong Kong equities
As highlighted by Global Markets Investor => ...