TAIPEI (Taiwan News) — The Taiwan market is seeing more gold sellers than buyers as the precious metal rose to an unprecedented NT$11,150 (US$349) per mace (about 3.75 g) Tuesday (Oct. 29).
Many Taiwanese, particularly in their 50s and above, are selling long-held gold ornaments. According to Taipei Jewelers’ Association Vice Chair Shih Wen-hsin (石文信), selling just 100 mace of gold can easily yield NT$1 million, per Yahoo stock.
Gold is a long-term investment that can retain its value over time, according to Shih. He recommends holding onto gold if immediate funds aren't needed, as he anticipates further price increases.
The Bank of Taiwan attributed the recent surge in gold prices to increased uncertainty surrounding the upcoming US presidential election. As investors seek safe-haven assets, demand for gold has surged.
A recent Kitco News survey found that 56% of 9 professionals, including traders and analysts, are bullish on gold prices this week, while 22% expect a sideways drift and 22% are bearish.
Additionally, a survey of 213 general investors revealed that 59% are bullish on gold prices, 19% expect a sideways drift, and 22% are bearish.
When prices of stocks, indices, or other assets are consistently increasing, it indicates a bullish trend, while a bearish market symbolizes the opposite. The upward movement is often fueled by high investor confidence and a positive outlook for the economy, according to Nadex.
A sideways market, also known as a sideways drift, occurs when the price of an asset moves within a specific range without a clear upward or downward trend. Neither buyers nor sellers have a dominant influence on the market.
