Expert: The market predicts that the Federal Reserve may raise interest rates, directly suppressing the upward potential of gold prices.

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ME News Report, June 11 (UTC+8), the European Central Bank released a report earlier this month stating that by the end of 2025, gold will account for 27% of the total amount of official reserve assets worldwide, surpassing U.S. Treasury bonds by 5 percentage points, becoming the largest single asset category in global official reserves. Experts say that the current large-scale central bank gold purchases began in 2022. Data shows that from 2022 to 2024, global central banks net purchased over 1,000 tons of gold for three consecutive years, with net purchases reaching 863 tons in 2025, far exceeding previous years' levels. Despite continuous gold purchases by central banks, why has the international gold price recently declined? Experts indicate that the recent volatility in international gold prices is caused by multiple factors. On one hand, the international gold prices surged consecutively in 2024 and 2025, accumulating significant correction pressure; on the other hand, energy price hikes triggered by Middle East geopolitical conflicts have raised inflation expectations, and market forecasts suggest the Federal Reserve may raise interest rates, directly suppressing the upward space for gold prices, creating a special situation of "central banks buying gold against the trend, with short-term gold price weakness." (Source: PANews)
GLDX-1.55%
PAXG0.97%
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