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ING commodities strategist Ewa Manthey stated in “Gold” journal this week that gold joined the worldwide inventory market sell-off in the beginning of this week, however in an surroundings of continued geopolitical uncertainty and expectations of U.S. rate of interest cuts, gold ought to regain its footing. Maintain your footing. Financial institution’s Up to date month-to-month.
Pushed by central financial institution shopping for, Asian customers and expectations of rate of interest cuts by the Federal Reserve, gold costs are nonetheless up about 18% up to now this yr. Manthey believes that gold costs will preserve their upward momentum after the consolidation section.
Central financial institution buying energy has continued to be sturdy this yr. Though complete purchases and gross sales have declined in contrast with the identical interval final yr, Mantai expects that central financial institution demand will stay sturdy sooner or later amid the present financial surroundings and geopolitical tensions in addition to costs falling from historic highs.
The analyst additionally famous that funds have continued their latest optimistic circulation momentum, with international gold ETFs experiencing two consecutive months of inflows after experiencing their strongest month since Could 2023.
Geopolitics will stay one of many key elements driving gold costs… [and] The U.S. presidential election in November and a long-awaited price minimize from the Federal Reserve can even proceed so as to add momentum to gold costs till the tip of the yr, Manthey wrote. USD/oz, with an annual common worth of USD 2,301/oz.
Comex front-month gold for August supply (XAUUSD:CUR) ends a tumultuous week +0.2% to $2,432.10 per ounce, however front-month August silver (XAGUSD:CUR) closed -2.7% This week to $27.487 per ounce; on Friday, gold rose 0.4%, whereas silver was flat.
ETF: (NYSE:GLD), (NYSE:GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (BAR), (OUNZ), (SLV), (PSLV), (SIVR), (SIL), (SILJ)
In line with Dow Jones, Saxo Financial institution’s Ole Hansen stated gold stays a superb alternative as a hedge amid geopolitical turmoil and the battle towards inflation.
Hansen stated: “We preserve a optimistic view on gold and think about it as a diversified hedge towards turmoil elsewhere. If the Federal Reserve begins slicing rates of interest as early as subsequent month, curiosity rate-sensitive traders might return to gold via ETFs.”
