Gold saw demand kick in early in European trade buoyed by demand from buy on dippers and the persistent geopolitcal tension. Poor releases out of the US merely served to underscore this bullish tone as it argues the potential for an early rate cut. Still the Fed is not known for reacting to single data…
Gold’s attempts at a rally has repeatedly faltered with geopolitics having limited impact absent any actual shooting among major powers. Hope’s that an easing cycle would provide a further lift has also been dashed as the Fed continue to sound hawkish bucking the trend among other central banks. Absent anything new to ignite demand we…
Geopolitics has once again reared its head in global markets benefiting Gold the most among the different asset classes. In the middle-east Hezbollah is warning of a wider regional conflict warning Cyprus that it could be a target if it provides any assistance to Israel as the Lebanon based terror group and the IDF continue…
With central banks recognizing the easing of inflation pressures across the globe we question just how much upside there is for Gold. Consider that the push for historical highs was driven by Central Banks buying the yellow metal and investors hedging for inflation. Who else is there to buy particularly if the whales are already…
Gold initially spiked up following the release of slightly weaker than expected CPI data encouraging dollar bears and inflation watchers to call foe an easing. Eventually though Fed Chairman Jerome Powell in his press conference sighted the release as a single data point not necessarily signalling a shift in trends. Note that expectations are now…
Already easing an hour before US Jobs data Friday, Gold may have defined a medium term high with the SHS break out from Friday as the premise for its move to historic levels may be over. Note that Gold has rallied from the 1600 levels in September 2022 largely as a hedge to inflation and…
Gold saw early demand from Asia, retreated then jumped back up again on the back of the ECB’s decision to cut rates. This could be a chicken or egg question but this mostly underscores the role of Gold as a hedge for inflation. The logic being lower interest rates could boost consumption that leads to…
Though also firmer Gold was not quite the big winner against the dollar with XAUUSD still stuck in its range play from last week. For now market is waiting for the next big catalyst for a test of the new historic highs though the more we see inflation metrics easing globally and geopolitical tensions getting…
Gold has been stuck on a range play since the failure to follow through on its sell-off from new historic highs. As previously mentioned the much of the surge in Gold may be attributed to two factors, central bank demand, and hedging against inflation. While Central Banks are unlikely to suddenly stop buying, we note…
Gold saw a sharp sell-off following the release of the US FOMC minutes suggesting a shift in bias among its member and more delays in US easing. The sharp drop to us suggests that despite the talk of demand from Central Banks for the yellow metal, the latest surge is not about hedging against inflation…
