ING commodities strategist Ewa Manthey said in “Gold” magazine this week that gold joined the global stock market sell-off at the beginning of this week, but in an environment of continued geopolitical uncertainty and expectations of U.S. interest rate cuts, gold should regain its footing. Keep your footing. Bank’s Updated monthly.
Driven by central bank buying, Asian consumers and expectations of interest rate cuts by the Federal Reserve, gold prices are still up about 18% so far this year. Manthey believes that gold prices will maintain their upward momentum after the consolidation phase.
Central bank purchasing power has continued to be strong this year. Although total purchases and sales have declined compared with the same period last year, Mantai expects that central bank demand will remain strong in the future amid the current economic environment and geopolitical tensions as well as prices falling from historical highs.
The analyst also noted that funds have continued their recent positive flow momentum, with global gold ETFs experiencing two consecutive months of inflows after experiencing their strongest month since May 2023.
Geopolitics will remain one of the key factors driving gold prices… [and] The U.S. presidential election in November and a long-awaited rate cut from the Federal Reserve will also continue to add momentum to gold prices until the end of the year, Manthey wrote. USD/oz, with an annual average price of USD 2,301/oz.
Comex front-month gold for August delivery (XAUUSD:CUR) ends a tumultuous week +0.2% to $2,432.10 per ounce, but front-month August silver (XAGUSD:CUR) closed -2.7% This week to $27.487 per ounce; on Friday, gold rose 0.4%, while silver was flat.
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According to Dow Jones, Saxo Bank’s Ole Hansen said gold remains an excellent choice as a hedge amid geopolitical turmoil and the fight against inflation.
Hansen said: “We maintain a positive view on gold and view it as a diversified hedge against turmoil elsewhere. If the Federal Reserve begins cutting interest rates as early as next month, interest rate-sensitive investors may return to gold through ETFs.”