TAIPEI (Taiwan News) — The Bank of Taiwan (BOT) saw its gold passbook selling price reach a record high of NT$2,613 (US$80.15) per gram on Wednesday (July 17) morning, marking a 30% rise from prices a year ago.
The BOT's Wednesday report highlights the market's growing expectation for a September rate cut, fueled by recent monetary policy pronouncements from U.S. Federal Reserve (Fed) Chair Jerome Powell and other officials. This anticipation, along with strong demand, is pushing up international spot gold prices, per CNA.
The BOT acknowledged the impact of the Trump assassination attempt on investor sentiment, alongside the ongoing geopolitical risks in the Middle East. These factors continue to bolster the safe-haven demand for gold.
The BOT's gold passbook prices saw significant fluctuations throughout the morning, with the 1-gram selling price surpassing the NT$2,600 mark, reaching NT$2,602 at 9:10 a.m. and climbing further to a record NT$2,613 by 10:20 a.m. By midday, the price had settled back to NT$2,602.
In light of the recent gold price surge, the BOT recommends that investors with long-term holding or hedging strategies continue to monitor the Fed's actions, developments in geopolitical conflicts, and policy changes surrounding the upcoming U.S. elections. Additionally, tracking key economic data like the U.S. Personal Consumption Expenditures Price Index (PCE), Consumer Price Index (CPI), leading indicators, and Non-farm Payroll (NFP) figures can provide valuable insights.
The BOT suggested a "batch layout" approach for gold investment, allowing investors to buy gold piggy banks, gold passbooks, small gold bars, or gold coins in stages to optimize their asset allocation and balance risk with potential returns.
