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China’s central bank added 160,000 troy ounces of gold to its reserves in March. Türkiye, India, Kazakhstan and some Eastern European countries are also buying gold this year. Photo: Unsplash

Gold prices hit a record high for the seventh straight session on Monday as central bank buying and geopolitical tensions eased, while strong economic data failed to dampen the bullion’s appeal.

Spot gold fell 0.1% to $2,326.19 an ounce by 11:54 a.m. ET (1554 GMT), after hitting a record high of $2,353.79 earlier in the session. US gold futures were steady at $2,344.80.

China’s central bank added 160,000 troy ounces of gold to its reserves in March. Türkiye, India, Kazakhstan and some Eastern European countries are also buying gold this year.

“Despite the strong economic data, the market is expecting a rate cut by June. But, if we continue to see strong data, which indicates the Federal Reserve is in no rush to cut rates, So gold will not be able to maintain its lead.” Bart Melek, head of commodity strategies at TD Securities.

“Central bank purchasing and geopolitical tensions are other supporting factors,” Melek said.

Traders are pricing in a 52% chance of a 25 basis point cut in the first half of June, data from CME Group shows. However, data on Friday showed that US job growth in March beat expectations, raising questions over the timing of the rate cut. [USD/] [US/]

Low interest rates reduce the opportunity cost of holding bullion.

COMEX gold speculators increased their net long positions by 20,493 contracts to 178,213 in the week ended April 2, according to data on Friday.

Spot silver was up 0.7% at $27.68, its highest in almost three years.

India’s silver imports hit a record high in February as lower duties encouraged big buying from the United Arab Emirates, officials said. reuters,

Platinum rose 3.9% to $963.19 and palladium gained 4% to $1,043.00.

Daniel Pavillonis, senior market strategist at RJO Futures, said prices were rising due to “expectations that (PGM) markets will move toward gold.”

“With gold being so expensive now, the precious metals sector as a whole is starting to benefit.”

(Only the headline and image in this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

first published: April 08 2024 | 10:35 pm First


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