Spot gold, above $3,100

On March 31, the London spot gold price continued the bull market trend, breaking through the intraday $3100 / ounce, is now at $3110.27 / ounce, an increase of 0.84%, once again a new record high. It is up more than 18% so far this year. COMEX gold also continued to set new highs, with COMEX gold trading at $3,133.9 an ounce, up 0.63%. At the same time, Trump's tariffs have increased more than expected, coupled with the US core PCE price index in February rising more than expected, and the recent weakening of economic data margins, resulting in the market strengthening "stagflation" expectations. In addition, the US stock market has continued to fall in the past half a month, the market risk appetite has fallen sharply, and hedge funds have gradually flowed to the gold market, forming a certain support for gold. The resurgence of global geopolitical risks, the Russian and Ukrainian armistice is difficult to make progress, coupled with the opposition of many European countries to cancel sanctions on Russia, and the deadlock in the second phase of the ceasefire agreement between Israel and Hamas, further increasing the market demand for safe havens, and helping gold continue to rise.

The impact of gold's breakout above $3,100 is far-reaching and widespread, especially financial and economic. First, the impact of the financial market, gold as a safe haven asset, its price above $3100 will further enhance the market's risk aversion. Investors may be more inclined to put their money into safe-haven assets such as gold to avoid the risks that may exist in other financial markets. The rise in gold prices could have an impact on stocks and bonds. Because gold has a certain correlation with financial markets such as stock and bond markets, a rise in gold prices could trigger a reassessment of the stock and bond markets by investors, thereby affecting the trend of these markets.

The second is the economic impact, the rise in gold prices may increase inflationary pressures. Some countries with large gold reserves could gain a greater voice and economic influence. Since gold is an inflation-resistant asset, a rise in its price could stoke fears of inflation, which could push prices higher. The rise in gold prices may have some impact on monetary policy. The central bank may use the trend of the gold price to assess its impact on inflation and economic growth, and adjust monetary policy accordingly to maintain the stability of financial markets and the healthy development of the economy.

The third is the impact on consumers, the rise in gold prices may have an impact on consumer confidence. On the one hand, a rise in gold prices could be seen as a sign of economic prosperity, boosting consumer confidence. On the other hand, if the price of gold rises too fast, it may also cause consumers to worry about the future economic outlook, which will reduce consumer confidence. As the price of gold rises, consumers' willingness to buy gold products such as gold jewelry may change. Some consumers may choose to buy gold as an investment or store of value, while others may reduce their purchases of consumer goods such as gold jewelry due to higher prices.

Fourth, the impact on international trade and the global economy, the rise in the price of gold may have a certain impact on the international monetary system. Since gold is a traditional safe-haven asset and reserve asset, the rise in its price may trigger adjustments and changes in the international monetary system. At the same time, the rise in the price of gold may promote the development of gold trade. As the price of gold rises, the import and export of gold may increase, thus promoting the development of related industries and increasing employment. As an international reserve asset and safe haven asset, the rise in the price of gold may have an impact on the global economic landscape. Some countries with large gold reserves could gain a greater voice and economic influence.

To sum up, the impact of spot gold breaking through $3100 on the economy is multifaceted, and these impacts may be intertwined and work together to have a complex and far-reaching impact on the overall economy. Therefore, policy makers and investors need to pay close attention to the dynamics of the gold market and changes in the economic situation in order to formulate reasonable policies and investment strategies to address potential risks and opportunities.