Institution: Gold prices may face challenges next year

Alexandra Symeonidi of William Blair & Company stated that if market sentiment improves next year and asset allocation returns to risky assets, the upward trend of gold may face challenges. She mentioned that although futures positions are higher than long-term average levels, they are significantly lower than this year's peak, suggesting that optimism in the gold market has cooled off after a strong rally since the beginning of the year. The senior corporate credit and sustainable development analyst also noted in a report that during a period of interest rate cuts with persistent high inflation, investors may increase their allocation to gold. Symeonidi also believes that due to the increasing US fiscal deficit and the low percentage of gold in the foreign exchange reserves of emerging market central banks, there is a more structural demand for gold from central banks.