Gold prices pared some of its gains on Friday after rising more than 1% in the previous session with the spotlight shifted to key US inflation data for clues on the Fed's policy path.
Bullion tumbled to its lowest level since 10 June on Wednesday amid risk-on mood. Major stock indexes on Wall Street have hit fresh record highs earlier this week, led by semiconductor stocks.
But ebbing economic momentum helped spur a significant rally. In its third estimate of GDP, the US government confirmed that economic growth moderated sharply in Q1.
Almost 60% of rich countries’ central banks believe that gold’s share of global reserves will rise in the next five years, according to the WGC. About 13 % of them plan to increase their gold holdings next year.
The demand highlights how allocations to the greenback have been declining as the institutions have sought to diversify their holdings, especially after the US weaponised its currency in sanctions.
The consecutive years of record buying, the pace of which has continued into this year, has been a driving factor behind gold’s bull run. The Chinese renminbi also gain traction despite its economic uncertainty.
The yellow metal is well supported by the key psychological level at $2,300. Initial resistance lies around $2,350 and a break above the level could propel it forward to the monthly high.
EBC Financial Market Forecast Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Economic Research Findings or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
면책 조항: 본 게시글에 표현된 견해는 전적으로 작성자의 견해이며 Followme의 공식 입장을 대변하지 않습니다. Followme는 제공된 정보의 정확성, 완전성 또는 신뢰성에 대해 책임을 지지 않으며, 서면으로 명시적으로 언급되지 않는 한 해당 내용을 기반으로 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다.
