Gold prices are soaring, pushing domestic prices in Taiwan to new highs.
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With the continuing conflict in the Middle East, international gold prices are rising, skyrocketing to over US$2,400 per ounce, equivalent to over NT$78,000. And Wall Street investment banks like UBS and Goldman Sachs are optimistic about the outlook of the gold market.
Taiwan's domestic gold prices are close to hitting NT$10,000 (US$307) per tael. According to the Taipei Jewellery Workshop Union, the domestic gold price rose from NT$9,520 (US$293) on Tuesday, to NT$9,630 (US$296) on Wednesday.
Jewelry store manager Cheng Ju-fang (鄭如芳) says that couples planning to get married see gold bridal jewelry sets as essential, and so are rushing to buy them, expecting prices to soar even higher in the coming months.
Experts say the surge in gold prices is not only due to geopolitical influences but more importantly, to the continuous decline in U.S. bond prices which has led many central banks to increase their gold reserves. Russia’s central bank and the People's Bank of China have been "de-dollarizing," selling U.S. bonds and buying gold. Russia began stockpiling gold after its forex reserves were frozen by Western countries following its invasion of Ukraine. There has also been a steady increase in gold demand among Chinese civilians.
As gold prices continue to reach new highs, financial experts warn of short-term fluctuations and encourage caution when trying to make a quick profit in the gold market.