Fed Rate Hike Pressure Drops Sharply as Gold Price Breaks $4,400 – Gold and Silver ETFs Rebound Strongly

Weaker-than-expected U.S. non-farm payroll data has led markets to sharply lower expectations for future Federal Reserve rate hikes. As a result, international gold prices have surged past $4,400 per ounce, reaching a nine-week high. Domestic precious metal ETFs have performed strongly, with Yuanta S&P Gold 2 (00708L-TW), Yuanta S&P Gold (00635U-TW), and Yuanta DJ Silver (00738U-TW) rising again today (11th), achieving double-digit gains since August.

Today (11th), Taiwan's stock market rebounded to reclaim the 45,000-point level, while precious metal ETFs continued their upward trend amid easing rate hike concerns. Since the July FOMC meeting, 00708L, 00635U, and 00738U have surged 17.4%, 8.6%, and 13.5% respectively.

Analysts note that a weakening U.S. dollar and rising safe-haven demand have renewed investor support for gold. With market expectations for further rate hikes cooling, and global economic growth and geopolitical uncertainties remaining high, gold’s role as a safe-haven asset continues to gain favor. Silver prices have also risen in tandem with gold, supported by improved sentiment in precious metal investments and a brighter outlook for industrial demand.

Although gold faced pressure in the first half of the year, it found strong support at $4,000 per ounce, reflecting its enduring value as a portfolio diversifier amid ongoing global uncertainty. Central banks worldwide continue to increase their gold reserves, with no sign of this trend reversing. Notably, China’s central bank added approximately 640,000 ounces of gold in July, marking the 21st consecutive month of accumulation and bringing its reserves to their highest level since October 2023.

With multiple bullish factors in place, JPMorgan forecasts gold prices could surpass $5,000 per ounce by Q4 2026. Wall Street’s leading market maker, Citadel Securities, also remains bullish, pointing out that trend-following funds are currently net short on gold and silver. A breakout in prices could trigger short-covering, further fueling upward momentum.

*Disclaimer: The stocks, funds, and futures products mentioned in this article are for informational purposes only and do not constitute investment advice. Investors should make independent decisions, carefully assess risks, and bear their own profits and losses.