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the price of gold has been rising steadily this year. after the federal reserve's first interest rate cut, the spot gold price broke through $2,600 on september 20, setting a record high. last week, the spot gold closed at around $2,622.27, approaching the target price of $2,700 set by many wall street investment banks this year or in the first half of next year. there are also many institutions that have called for a price of $3,000.

for gold, a non-interest-bearing asset, the interest rate cuts by global central banks have undoubtedly highlighted the value of gold. in addition, the trend of central bank gold purchases is crucial because the fed's interest rate cuts have already been priced in by the market. for example, the yield on the 10-year u.s. treasury bond has long fallen to about 3.7%, far below the federal funds rate (4.75%~5%). the disconnect between gold prices and interest rates this year has been entirely driven by central bank gold purchases. although the people's bank of china has suspended gold purchases since may, india's gold imports hit a record high in august, especially as india announced in its joint budget on july 23 that it would reduce tariffs from the original 15% to 6%, which boosted import demand.

currently, investment banks such as ubs and goldman sachs have given a target price of $2,700, and more domestic and foreign hedge funds expect that it is only a matter of time before the $3,000 mark is reached. fawad razaqzada, a senior analyst at forex capital, told reporters: "gold has broken through the $2,600 mark, and some profit-taking is expected to occur soon, but i remain mildly bullish on the trend of gold for the rest of the year. although gold may not reach the $3,000 milestone this year, i think this long-term goal is still promising due to the expectation that major central banks such as the federal reserve will accelerate interest rate cuts, coupled with continued geopolitical tensions and central bank gold purchases. geopolitical drivers may be more important than interest rate cuts."