CCTV News: Last week, the international spot price of gold futures broke through the $3,000 mark per ounce and once set a record high. At the same time, the US dollar continued to weaken, attracting widespread attention from the market. Many media and experts believe that this round of gold price surge not only reflects the rising market risk aversion sentiment, but also shows signs of wavering in the global dominance of the US dollar.

The uncertainty of US policy has intensified, hurting market confidence. According to the analysis of CBS, inflation, interest rate policies, geopolitical tensions and domestic concerns about the economy in the United States constitute a so-called "perfect storm", and the soaring gold prices is the result of this "storm". As a global reserve currency, the US dollar's credit is closely related to the US economy. However, since the beginning of this year, the United States has successively imposed tariffs on major trading partners such as Mexico and Canada, and imposed a 25% tariff on all steel and aluminum imported to the United States, which has been countered by many countries. Meanwhile, the U.S. government has implemented a layoff plan and fired tens of thousands of federal workers, raising concerns about the outlook for economic growth. Former U.S. Treasury Secretary Lawrence Summers said in an interview that U.S. President Trump's capricious policy actions and remarks are eroding global market trust in the US dollar, and the sharp rise in gold prices is a reflection of this uncertainty.

The US economic outlook is bleak, and investors "abandon the US dollar and invest in gold"

The Nikkei News Network analyzed that after the outbreak of the Russian-Ukrainian conflict in 2022, Russia encountered Western economic and financial sanctions, and hundreds of billions of overseas dollar assets were frozen, which made emerging global markets realize the potential risks of holding US dollar assets, and thus accelerated the process of de-dollarization. At the same time, both the US dollar index and US Treasury yields have fallen recently, and the US consumer confidence index has also declined for three consecutive months, falling to its lowest level in the past two years, indicating a bleaker economic outlook. Funds that have nowhere to go can only escape the US dollar and concentrate on physical assets and gold.

If the Fed cuts interest rates sharply in the third quarter, gold prices may continue to rise

Although gold prices are currently at historical highs, some analysts believe that the upward space for gold prices still exists. Goldman Sachs' commodity team predicts that if the U.S. unemployment rate exceeds 5% and inflation falls below 2.4%, the Federal Reserve may launch a 50 basis point "hawkish interest rate cut" in the third quarter. This move will drive gold prices to further rise this year, impacting the price of $3,200 per ounce.