Gold prices continued to rise, benefiting from a wave of interest rate cuts from central banks around the world.

On Thursday local time, gold spot and futures prices both hit record highs.

Among them, spot gold closed up 1.84% to 2558.07 US dollars/ounce, setting a new historical closing high.

COMEX gold futures rose 1.78% to 2587.6 US dollars/ounce, breaking a record closing high.

At the same time, Silver's performance was also very good.

Spot silver rose 4.19% to $29.8792 per ounce.

COMEX silver futures rose 4.48% to $30.225 per ounce.

Affected by this, Hong Kong gold stocks collectively opened higher. Lingbao Gold rose more than 6%, China Baiyin Group rose more than 5%, Shandong Gold and Zhaojin Mining rose more than 4%, China Gold International rose more than 3%, and Zijin Mining rose nearly 3%.

A-share Xiaocheng Technology rose more than 7%, Chifeng Gold rose more than 3%, and Shandong Gold, Hunan Baiyin, and Hunan Gold rose more than 1%.

US gold stocks soared. Coldallen Mining rose more than 19%, US Gold Company rose more than 10%, Harmony Gold rose more than 8%, and Kinross Gold rose more than 6%.

Increased probability of cutting interest rates by 50 basis points

Last night, the ECB cut interest rates by 25 basis points as scheduled, and did not reveal much about the future path of interest rate cuts.

However, the market lowered its bet on the ECB's interest rate cut next month, and it is widely expected that the ECB will cut interest rates again at the December meeting.

After the ECB, the Federal Reserve will also begin the cycle of cutting interest rates at the September 17-18 meeting.

Economic data released earlier showed that US inflation continued to fall, and the labor market showed signs of weakness.

Currently, the market currently anticipates an increase in the probability that the Fed will cut interest rates by 50 basis points: the probability of cutting interest rates by 25 basis points is 57%, and the probability of cutting interest rates by 50 basis points is 43%.

In response, IG analyst Tony Sycamore said, “This is another turning point in the [Federal Reserve interest rate cut] debate. Everyone (before) thought we were back on the 25 basis point track, and now 50 basis points are suddenly back on the negotiation table.”

Phillip Streible, chief market strategist at Blue Line Futures, said, “The labor market continues to be sluggish. If the labor market deteriorates, the Federal Reserve's journey to cut interest rates will continue for a long time.”

In the face of declining interest rates, gold is often the first choice for investors. Wall Street believes that no matter how much the central bank cuts interest rates, as soon as it starts, it is good for gold.

Ole Hansen, head of commodity strategy at Saxo Bank, said, “Factors such as the ECB's interest rate cut, a slight increase in unemployment claims, and a rise in PPI are enough to push the price of gold to a new high.”

He also added that for the gold market, the beginning of a cycle of interest rate cuts may increase support, regardless of the extent of interest rate cuts.

Alex Ebkarian, chief operating officer of Allegiance Gold, said: “We are moving towards a lower interest rate environment, so gold is becoming more attractive... I think we may cut interest rates more frequently rather than drastically.”

Goldman Sachs sees $2,700

Recently, Goldman Sachs analysts suggested in a report that investors should “buy gold.”

Goldman Sachs believes that gold is still the first choice to hedge against geopolitical and financial risks. The Federal Reserve is about to cut interest rates, and emerging market central banks are buying gold, which provides it with additional support.

However, it is important to note that the Central Bank of China has suspended increasing its gold holdings for 4 consecutive months, while previously it had been buying gold for 18 consecutive months.

Looking ahead, Goldman Sachs indicated that gold will hit a target price of 2,700 US dollars/ounce in early 2025.