According to Jinshi, macro fund managers said that the rally in gold prices to all-time highs has not yet ended, and the factors that have driven gold prices to surge nearly 20% since mid-February are expected to push gold prices further up. Expectations that the Federal Reserve will cut interest rates this year have driven gold prices up, an environment that reduces the opportunity cost of holding gold. The chaotic conflicts in the Middle East and Ukraine have supported demand for safe-haven assets, and purchases by global central banks have also added to the bullish backdrop. Rajeev De Mello, global macro portfolio manager at GAMA Asset Management SA, said the current momentum is a signal to increase gold holdings. While the continued sharp rise in gold prices has unsettled some observers, investors have not been deterred. In the Comex gold futures market, fund managers are increasing their bullish bets on gold, with net long positions rising to a nearly four-year high in the week ending April 2.
