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Gold – “central bank buying spree”

  
Analysis, Gold / Silver

A snippet from ANZ’s latest look at commodities, this on gold:

  • Gold remains a valuable asset amid rising geopolitical tension, growing macro uncertainty and a maturing economic cycle. The market expects synchronous rate cuts globally, which will make non-yielding gold attractive for investors.
  • Safe-haven buying of gold continued, with ETF holdings rising by 150t. The central bank buying spree continued in an effort to diversify from the US dollar. In PGMs, we see auto catalyst demand supportive, as the new China VI emission legislation kicks in from this month
A snippet from ANZ's latest look at commodities, this on gold:
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the central bank buying spree ANZ refers to we have covered in past months on ForexLive. Its been notable indeed.

Gold drops $26 on Fed cut questions

  
Analysis, Gold / Silver

Interesting chart in gold

Interesting chart in gold
Gold is suffering on uncertainty about the likelihood of Fed cuts. A July 31 is still almost 100% priced in but the odds of 2, 3 and 4 cuts in the year ahead are falling and that’s taken gold with it.
At the same time, the rally in gold is largely about the global easing cycle and the ECB has left little doubt that it’s going to cut, while the BOE has signaled an openness to lowering rates.
Technically, you can see the uncertainty in gold. It’s formed a bit of a double top and is now feeling out last week’s low. I think a break in either direction is one to go with.
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