Central banks are set to increase their gold reserves over the next year, according to a new World Gold Council survey. More reserve banks are increasing their domestic bullion holdings, or diversifying their overseas storage, amid an increasingly fractured geopolitical environment.
In January 2018, the U.S. derivatives regulator did something it had never done in one swoop. It announced settlements with Deutsche Bank, UBS and HSBC over the same trick, in the same market, on the same day.
Axel Merk is focused exclusively on physical gold and precious metals mining, emphasizing active management over passive ETF exposure. Gold's price is highly sensitive to macro shocks, particularly geopolitical events like the Iran conflict, and currently shows increased correlation with risk assets.
While gold prices on Comex haven't touched a record high since late January, a key reason for their climb back then to all-time intraday highs above $5,600 an ounce — namely, buying by global central banks — has proven to be resilient.
The gold market continues to hold on to solid gains after testing critical support near $4,000 an ounce, but one market strategist believes the precious metal remains trapped in a broad consolidation phase as investors wait for greater clarity on interest rates and inflation.
Wall Street analysts are taking a shine to gold.
Falling Treasury yields provided significant support to precious metals.
The gold market continues to build on Monday's gap higher, and with inflation pressures expected to ease, the precious metal could attract some safe-haven interest as the U.S. housing sector continues to struggle, with housing construction remaining sluggish.
The gold market continues to build on Monday's gap higher, and with inflation pressures expected to ease, the precious metal could attract some safe-haven interest as the U.S. housing sector continues to struggle, with housing construction remaining sluggish.
The ongoing US-Iran ceasefire amid Iran-Israel tensions allowed gold and silver to focus on technical recoveries. Gold rebounded off $4,345 channel support while silver traded at $70.60.
Fewer central banks now store bullion in London and New York—a reflection of growing geopolitical concerns and the desire to ensure greater control and access to reserves.
Central bank demand has been a solid pillar of support for the gold market as prices pushed to all-time highs at the start of the year. According to the latest report from the World Gold Council, official-sector demand is expected to remain robust for the foreseeable future.