Page 36 - Bullion World Volume 4 Issue 7 January 2024

NEWS

Trump 2.0 could drive global investors to gold, both silver

and gold prices will benefit from trade wars – Heraeus

In their latest report, Heraeus analysts predict
that a potential Trump 2.0 presidency could drive
global investors towards gold due to anticipated
economic policies leading to market volatility and
inflation. They highlight the impact of previous US-
China trade tensions, correlating tariff escalations
with rising gold prices. Additionally, concerns over
Federal Reserve independence under Trump are
noted, with potential implications for monetary
policy and the dollar's strength, further bolstering
gold's appeal. In the Asian market, robust gold
demand in India contrasts with declining trends
in China, while silver is expected to benefit
from expanding US solar and electric vehicle
infrastructure, fueled by domestic investment and
trade barriers. Gold prices held steady, while silver
showed moderate upward momentum amid these
dynamics.

Source: https://www.kitco.com/news/article/2024-07-02/trump-20-could-drive-global-investors-gold-both-silver-and-gold-prices-will

Central banks buy only 10 tonnes of gold in May;

but China is not done yet

Central bank demand has been a critical pillar of support have bought gold in the last few weeks of June. While
this year as prices pushed to record highs above $2,450 China has been a dominant player in the gold market, it
an ounce. Although central banks continue to buy gold, is not alone. In a recent interview with Kitco News, Juan
the pace slowed in May. Carlos Artigas, head of Research at the WGC, said that
central bank demand is bigger than just one country. He
According to the latest numbers from the World Gold pointed out that a growing number of central banks are
Council, central banks bought a net 10 tonnes of gold in increasing their reserves.
May, a drop of 56% from April. The WGC noted that net
buying is well below the 12-month average of 42 tonnes. In May, Poland’s central bank, Narodowy Bank Polski,
The drop in purchases does not come as a significant bought 10 tonnes of gold; Turkey’s central bank bought
surprise to some analysts, as the market is missing six tonnes of gold; the Reserve Bank of India bought four
one key player. In early June, China spooked the gold tonnes of gold; and the Czech National Bank bought
market after data from the country’s central bank showed three tonnes of gold. The biggest seller in May was the
that it didn’t buy any gold in May, ending an 18-month National Bank of Kazakhstan, which sold 11 tonnes of
shopping spree. Although China didn’t buy gold in May, gold.
analysts have said that they don’t expect it to have ended
its purchase program. Analysts note that even after 18 Artigas noted that while it’s still early, the WGC expects
months of buying, China’s gold reserves only equate to that central bank demand will end the year above the
4.9% of its total foreign reserves. 10-year trend of 500 tonnes. “Central banks are well-
positioned to have a consistent or a robust year, even if
In a recent interview with Kitco News, Christopher we don't get to the same levels as we saw last year,”
Vecchio, Head of Futures & Forex at Tastylive.com, said he said.
that according to some regional data, China appears to

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