Under the convergence of multiple positive factors, the gold market is staging a spectacular epic bull run. On September 5th Eastern Time, spot gold prices powerfully broke through the $3,600 per ounce barrier, setting a new historical record with a cumulative gain of 36.65% year-to-date. Behind this surge lies the steady pace of continuous purchases by global central banks, the sharp rise in Federal Reserve rate cut expectations, and the subtle erosion of market confidence in the dollar system. Gold, this ancient safe-haven asset, is becoming the absolute protagonist of global capital markets with an unprecedented momentum.

**Three Engines Drive Gold Prices to New Heights**

The strong momentum of this gold bull market primarily stems from the combined push of three core factors.

First, the global central bank gold-buying wave provides solid bottom support for gold prices. The latest data from the People's Bank of China shows that gold reserves reached 74.02 million ounces (approximately 2,098 tons) at the end of August, marking the 10th consecutive month of increases. Since November last year, China's central bank has cumulatively added about 38 tons of gold. Looking globally, World Gold Council data shows that global central banks have been net purchasers of gold for fourteen consecutive quarters. CITIC Futures analyst Wang Yanqing points out that central banks aim to "gradually reduce dependence on dollar assets and diversify single reserve currency risks," with gold currently in its third major bull market in history. A symbolic turning point is that gold's share in central bank reserves outside the Federal Reserve has exceeded US Treasuries for the first time since 1996, interpreted by markets as "the beginning of the most significant global rebalancing in modern history."

Second, Federal Reserve rate cut expectations have become the direct catalyst igniting the market. With unexpectedly weak US August non-farm payroll data, market expectations for a September Fed rate cut have soared to 100%, while full-year rate cut expectations have been revised up from 50 basis points a week ago to 75 basis points. CITIC Securities analysis suggests that the Fed's more front-loaded rate cut path will lead gold markets into a more stable bull market. Rate cuts not only reduce the opportunity cost of holding non-yielding gold but may also trigger dollar depreciation, directly pushing up dollar-denominated gold prices.

Finally, concerns about the independence of the dollar system have generated strong safe-haven demand. In this context, gold, as a "store of value independent of sovereign credit," has become the ultimate choice for hedging against currency devaluation.

**Market Sentiment Reaches Boiling Point, Gold Becomes "Most Popular Trade"**

Driven by fundamental positives, market sentiment has reached a boiling point. Goldman Sachs' latest survey report reveals a striking fact: the ratio of investors bullish on gold versus those bearish approaches 8:1. This marks the first time gold has become the "most popular bullish trade" in this survey, with enthusiasm described as "unprecedented," even surpassing developed market equities.

Goldman Sachs analysis indicates that whether optimistic about expected rate cuts or pessimistic about Fed independence concerns, both camps view gold as an ideal allocation. Wall Street giants including Morgan Stanley, Goldman Sachs, and Bank of America have all raised their gold price targets, with both Goldman Sachs and Bank of America predicting that gold prices will reach $4,000 per ounce by 2026.