BlockBeats News, August 26th. Gold has recently maintained its strength, with significant volatility at high levels. The weakening of the US dollar, the fall in US bond yields, concerns about the fiscal deficit, and safe-haven demand have all supported the price of gold. However, Citigroup warns that the recent breakthrough in gold is more driven by speculative funds such as futures, and actual demand has not caught up yet.

Citigroup believes that this means gold will be more sensitive to macro events in the short term. Rises driven by speculative funds can quickly form a trend and are also prone to profit-taking when policy expectations change. The current market is awaiting speeches from the Jackson Hole Global Central Bank Symposium. If the Federal Reserve sends a hawkish signal, the US dollar and real interest rates may rebound, putting pressure on the gold rally; if the policy statement is more dovish, the gold price will have the opportunity to continue its upward trend.

The background of recent gold trading has also changed. Fiscal sustainability, long-term US bond yields, and central bank gold purchases remain medium-term supports, but short-term prices have already accumulated a lot of momentum funds. For traders, gold is no longer just a safe-haven asset, but is increasingly resembling a macro high-beta asset sensitive to the US dollar, real interest rates, and fiscal risks simultaneously.