Mixed Central Bank Buying Patterns Keep Gold Market on Edge

8 July 2024

Gold prices have retreated slightly after a strong weekly rally, with the market focusing on central bank purchasing activities. While the People’s Bank of China paused its gold buying for a second consecutive month, India and Poland have added to their reserves. Despite this mixed signal, gold remains near $2,375 an ounce, supported by long-term investor confidence due to economic uncertainties and geopolitical tensions. The market is now anticipating Federal Reserve Chair Jerome Powell’s testimony and upcoming U.S. inflation data, which could influence expectations for interest rate cuts and, consequently, gold prices.

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