Page 36 - Bullion World Volume 4 Issue 7 January 2024
P. 36

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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