Gold price gains for second consecutive week, silver surges to 11-year peak
Motilal Oswal Financial Services. Also read: Gold rate today: Gold price retraces from three-week high despite US Fed rate cut buzz, weak US dollar. Buy or wait? Damani added, “The CME Fed-watch tool showed traders pricing in a greater chance of a 25 bps cut in September, at nearly 54%.
Still, several Fed officials warned over the past week that the central bank needed more confidence that inflation was going down. A sharp rally in industrial metals has also supported an up-move in silver prices. Today, the economic calendar is fairly light w.r.t.
the US; however, the focus will be on EU CPI and comments from Fed officials." In terms of demand, anticipations of sustained robust demand in China were boosted following the nation's announcement of further measures to stabilise its property sector, which has been facing a crisis. China's demand, a significant contributor to the recent surge in gold prices, is gaining increasing importance. Observers closely monitor whether the elevated gold prices will lead some central banks to reduce their purchases and how outflows from physically backed gold exchange-traded funds will evolve.
During 2022-2023, global central banks actively purchased gold. However, China's central bank, the largest buyer, scaled back its buying activity in April as spot gold prices surged to a record high of $2,431.29. In the physical market, dealers in China offered reduced premiums, while deeper discounts were observed in India throughout the week.
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