International gold prices return to $4,600; institutions: short-term may maintain high volatility

Ask AI · What factors primarily drive the high volatility in short-term gold prices?

China News Network (Zhongxin Jingwei) March 25 report: On the 25th, precious metal prices continued to rebound, and related stocks also moved higher. Intra-day, spot gold and COMEX gold futures prices both rose above $4,600.

As of the time of this release, spot gold was up 1.75% to $4,550.17 per ounce, while spot silver was up 2.43% to $73.007 per ounce. COMEX gold futures were up 3.64% to $4,562.3 per ounce, and COMEX silver futures were up 5.68% to $73.52 per ounce.

Source: Wind

Domestically, as of the time of this release, the Shanghai Gold main contract was up 3.7% to 1,015.44 yuan per gram, and the Shanghai Silver main contract was up 6.69% to 18,051 yuan per kilogram.

In the A-share and Hong Kong stock markets, precious metals sector stocks also rose.

Among them, in the A-share market, as of the time of this release, Chifeng Gold rose more than 5%, Zhongjin Gold and Hunan Silver rose more than 3%, Zijin Mining and Shandong Gold International rose more than 2%.

In the Hong Kong stock market, as of the time of this release, China Silver Group rose more than 5%, Lingbao Gold rose more than 4%, and Zhaojin Mining, Tongguan Gold, and Shandong Gold rose more than 2%.

Shenyin Wanguo Futures stated that the core drivers of this precious metals adjustment stem from a dual squeeze: the downward revision of rate-cut expectations and a liquidity shock. First, falling rate-cut expectations push the U.S. dollar index and real yields higher. Second, global risk appetite comes under pressure, leading to tight liquidity.

Shenyin Wanguo Futures also noted that, from a mid-to-long-term perspective, the center of gravity for precious metals prices will continue to move upward. On the one hand, the center of gravity for geopolitical risk is rising; the global reconfiguration of the political and economic order is still ongoing. On the other hand, concerns about the sustainability of U.S. government finances are still intensifying. At the same time, as Trump frequently intervenes in the independence of the Federal Reserve, the dedollarization process will continue to advance, and global central banks will keep increasing their gold reserves. The long-term upward trend for gold remains unchanged. Silver, platinum, and palladium—driven by the resonance between their industrial attributes and financial attributes—will follow the overall sector trend, but their volatility will be relatively larger.

Gold and Silver Futures analysis by Jinerui Futures states that in the short term, gold and silver prices may maintain high volatility. Policy expectations, risk-aversion sentiment, and competition for liquidity will continue to dominate this stage of the market. In the medium to long term, however, core supports such as the global high debt burden, geopolitical risks, and silver’s structural shortage remain unchanged. Next, it will be necessary to closely monitor developments in the Middle East. (China News Network Jingwei APP)

** (The views in this article are for reference only and do not constitute investment advice. Investing involves risk; enter the market cautiously.)**