2 October 2024
The gold market is experiencing a significant shift as record-high prices dampen physical demand in key markets worldwide. As gold prices soar to unprecedented levels, retail consumers are increasingly opting to sell their holdings and capitalize on profits rather than make new purchases. This trend has led to a sharp decline in physical gold demand across major markets, including India and China, the world’s top consumers. The rally, fueled by anticipated U.S. Federal Reserve interest rate cuts and geopolitical tensions, has pushed gold to its highest price in years, creating a challenging environment for traditional buyers and potentially reshaping the dynamics of the global gold market.