Analysis: The international spot gold return rate is projected to reach 68% by 2025, and "currency devaluation trading" has restarted.

According to Odaily Planet Daily, Robin Brooks, senior economist at the Brookings Institution and former chief foreign exchange strategist at Goldman Sachs, stated that gold's record high proves the so-called "currency devaluation trade" has restarted. Since 2025, international spot gold has returned 68%; driven by many similar factors, international spot silver also hit a record high on Monday, with a year-to-date gain now approaching 140%. Brooks pointed out that the breakout in gold and the broader precious metals was triggered by Federal Reserve Chairman Powell's dovish remarks at the Jackson Hole conference on August 22 and the 25 basis point rate cut on December 10. Commodity traders are also anticipating further rate cuts from the Fed. While the dollar appears relatively stable and unaffected by the "currency devaluation trade," its strength against the extremely vulnerable yen masks its broad weakness against a basket of currencies. (Jinshi)