On the day, international gold prices broke through the $2,000/ounce mark, setting a new closing record high. By the close of the day, the December gold futures on the New York Mercantile Exchange settled at $2,019.40/ounce, up $19.40 from the previous trading day, marking a gain of 0.97%.

In this regard, analysis points out that the rise in gold prices is related to the loose monetary policy environment and the ongoing geopolitical uncertainty. According to an analysis report released by UBS Group, factors such as geopolitical risks have intensified market uncertainty, making gold's避险特性more pronounced.

On the other hand, the loose monetary policies currently adopted by major economies have also significantly impacted gold prices, stimulating their rise. Gold itself does not generate interest, and it often rises when interest rates are lowered.

On the same day, just five weeks after the last rate cut, the European Central Bank once again decided to reduce the overnight deposit rate by 10 basis points, to 0.%, and the market currently highly anticipates that the European Central Bank will further cut interest rates at each monetary policy meeting before December 2023. Meanwhile, the market also holds a positive outlook on the prospect of further rate cuts by the Federal Reserve.

According to the CME Group's FedWatch Tool, the market currently expects the Federal Reserve to cut interest rates by 25 basis points at its monetary policy meeting this month, with a probability exceeding 70%, and there will be one more rate cut within the year. Goldman Sachs' latest forecast even anticipates that the Federal Reserve will begin a series of six consecutive rate cuts, each by 25 basis points, starting from the monetary policy meeting in September, with the final interest rate range expected to be between 1.75% and 2.00%.

With the expectation of interest rate cuts, the relative appeal of non-interest-bearing assets like gold is also increasing. UBS expects in its report that the price of gold futures could rise to $X/ounce by the end of the year and further climb to $Y/ounce in 2024. This forecast is higher than UBS's previous expectations for gold prices.

In its long-term forecast for gold prices, UBS also pointed out the impact of central banks' continuous gold purchases on the gold price, "The supply and demand relationship in the gold market is also an important factor affecting its price, and the global central banks' overall demand for gold may continue to increase."

At the annual industry conference of the London Bullion Market Association this week, officials from multiple central banks stated that the proportion of gold in national foreign exchange reserves may continue to increase. In the latest report released by the World Gold Council on the World Gold Council Day, the organization also expressed a positive outlook for global central bank gold demand for the remainder of the year.