The price of gold is approaching 800 yuan/gram. Will it continue to rise?

　　Spot gold and COMEX gold futures broke historical highs, touching the $2,700/ounce mark for the first time, and gold jewelry quotes approached 800 yuan/gram. The price of gold once again ushered in a moment of glory. Investors are paying more and more attention to gold. The price of gold may still have room to rise, but investment needs to be cautious.

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Gold price approaches 800 yuan/gram

　　On October 18, London gold spot gold rose by 1.1%, with an intraday high of US$2,722.47 per ounce; COMEX gold futures rose by 1.07%, with an intraday high of US$2,737.8 per ounce. Prices of gold jewelry at major domestic gold brands have continued to rise. Chow Tai Fook's pure gold jewelry price has reached 799 yuan/gram, approaching the 800 yuan mark, increased 23 yuan in three days. Chow Sang Sang quoted 794 yuan/gram, which increased by 20 yuan in three days.

　　On October 20, a reporter from Beijing Business Daily randomly visited some gold stores. Their sales staff said that the price of gold has fluctuated significantly, reaching a peak in the past few years. The stores are currently selling at the retail guide price of 806 Yuan/gram.

　　According to Chao News, Xiaobei is the owner of a gold store. The store has been open for more than five years and the price of gold continued to break through. She remembers that when the store was opened, the basic gold price was just over 300 yuan per gram. Xiaobei told Chao News reporters that he continues to be bullish on gold and feels that the price of gold may continue to fluctuate upward. Although the price of gold will correct midway, investing in gold should take a long-term view.

Will gold prices continue to rise？

　　Michael Armbruster, co-founder and managing partner of Altavest, said gold is unlikely to reach a price ceiling anytime soon. In other words, gold still has a lot of room to rise. Wang Hongying, president of the China (Hong Kong) Financial Derivatives Investment Research Institute, also said that given that the current loose monetary policy of the Federal Reserve and global instability still exist, these factors are expected to continue to support gold to maintain its upward trend. First, the Federal Reserve's interest rate cuts have supported gold. Second, continued international political and economic conflicts and military tensions have prompted large quantities of safe-haven funds to flow into the gold market. The de-dollarization plan will further push up the price of gold.

　　However, as a spot transaction, physical gold requires investors to make full investments based on their financial strength to avoid risks caused by excessive leverage. Products such as gold futures, due to their leveraged nature, can bring faster returns in the context of an upward trend, but they are also accompanied by greater market reversal risks.

　　Zhou Maohua, an analyst at the Financial Markets Department of China Everbright Bank, believes that gold investment risks have increased after continuing to hit new historical highs. From the perspective of sound investment, investors are advised to diversify and prudently invest and pay attention to the risks of short-term market fluctuations.