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Gold Market Hits Historic High with Over $100 Million Buying Pressure Amid Potential Short-Term Losses

Gold Market Hits Historic High with Over $100 Million Buying Pressure Amid Potential Short-Term Losses

The gold trading market is experiencing a surge, with investors eagerly purchasing gold bullion, leading to record-high transaction values. According to statistics from the OTC market, on April 22, the total transaction amount for two gold bullion products reached NT$1.12 billion, setting a historic high, with a total volume of 824 taels and 332 transactions.

However, with the gold price dropping today, the substantial buying initiated yesterday may face short-term pressure of being locked in losses. Since last year, gold has entered a bullish trend, boosting demand for gold shops, ETFs, and gold savings accounts, keeping the spot market lively. Statistics show that the daily transaction value of OTC gold has frequently broken records this year, surpassing NT$50 million, NT$60 million, NT$70 million, and even NT$90 million, culminating in yesterday's crossing of the NT$1 billion mark, a historic milestone.

Nevertheless, with Trump's warming relations with the Federal Reserve and China, market risk aversion has diminished rapidly, leading to profit-taking pressures on gold. Currently, local gold prices have fallen below NT$14,000, while the value of gold savings accounts has also dropped from a high of NT$3,652 to NT$3,519. However, a report from Taiwan Bank indicates that, despite short-term price corrections, buying interest is expected to remain strong.