Gold’s price potential still ‘explosive’ amid Beijing hoarding, Hong Kong trading push
Gold prices have “explosive” upside potential, according to analysts, boding well for Hong Kong’s ambitions as a trading hub as Asian central banks continue to have a voracious appetite for stockpiling bullion. Supporting the outlook, Beijing – which has added to its gold reserve for 20 straight months – wants to better connect the Shanghai Gold Exchange to Hong Kong, and the South Korean central…
Analysts project a bright future for gold prices, driven by hoarding by Beijing and Hong Kong's efforts to become a key trading hub. China, the world's largest gold buyer, has been steadily increasing its gold reserves for the past 20 months, setting a record in the second quarter with US$45 billion in demand. The Shanghai Gold Exchange aims to strengthen ties with Hong Kong and expand its international board to facilitate yuan-denominated gold trading.
Hong Kong has launched a gold clearing and settlement system and is investing in increased vault capacity. The city's gross gold imports surged nearly 29% in July. Central banks globally, particularly in China and South Korea, are boosting their gold holdings amid geopolitical concerns and easing gold price pressure. China's sovereign gold purchases have risen by 480,000 ounces in the past month alone, contributing to a 20% increase in gold prices.
Experts predict gold could reach US$4,700 per ounce by year-end and US$5,000 per ounce by early 2027, supported by robust demand from Asia.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written; read the original for the full account.
