Gold Outlook Brightens as Hong Kong Expands Trading Role
SCMP · 1 SOURCESabout 11 hours ago2 MIN
Summary
Gold’s rally may have further to run, with major institutions arguing that official-sector buying, especially from China and other emerging markets, is keeping the market structurally strong . At the same time, Beijing and Hong Kong are deepening market links through the Shanghai Gold Exchange and new local trading infrastructure, reinforcing Hong Kong’s ambition to become a regional bullion hub .
Key Points
- Deutsche Bank analyst Michael Hsueh said gold remains in an “explosive phase” and forecast prices at US$4,700 per ounce by year-end .
- Hsueh said official gold demand reached a record US$45 billion in the second quarter, with substantial unreported official buying still evident .
- State Street’s Aakash Doshi said gold could rise to US$5,000 per ounce by late 2026 or early 2027, supported by China and emerging-market central banks .
- Beijing has added to its gold reserves for 20 consecutive months, while South Korea’s central bank plans its first gold purchase in 13 years .
- The Shanghai Gold Exchange said at its midyear work conference it would strengthen Hong Kong-Shanghai cooperation and expand its international board for offshore yuan gold trading .
Why It Matters
The combination of sustained central-bank demand and new cross-border trading links could deepen liquidity in yuan-denominated gold products and strengthen Hong Kong’s role in precious-metals trading . If prices continue climbing toward the targets outlined by major asset managers, Hong Kong’s new clearing platform and exchange incentives may attract more regional investors and support broader yuan internationalisation efforts .