Gold and Silver Bullion Highlights | 10th July

Gold and Silver Rates Updates

Jul 10, 2024 - 10:23
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Gold and Silver Bullion Highlights | 10th July

Gold remained stable on Tuesday following the Federal Reserve chairman's restatement that the central bank requires more evidence of decreasing inflation before considering a reduction in interest rates. Bullion was priced at approximately $2,363 per ounce following Jerome Powell's speech at the US Senate Banking Committee. The Federal Reserve has been raising interest rates.

To control rising inflation, Powell stated on Tuesday that there has been some minor additional advancement after over two years. Reduced interest rates generally benefit gold and other commodities priced in dollars. The gold market is keeping an eye on central bank acquisitions, especially after Uzbekistan, Serbia, and the Czech Republic increased their reserves. Gold has gained more popularity in central and eastern Europe as countries look to diversify reserves and use it as a safeguard against geopolitical instability.

In June, the Czech Republic increased its gold reserves as central bank Governor Ales Michl persisted in carrying out a strategy to diversify investments and ensure profitability for the institution. Czech Republic's gold reserves rose to 41.5 metric tons in the current month, up from 39.7 tons in the prior month, according to data from the central bank released on Tuesday.

In June, the value of gold amounting to $3.1 billion was still just a small portion of the $146.5 billion total reserves, making it one of the highest in the world relative to the economy's size.

Key Perspective: Gold and silver prices are slightly up in today's trading on the global stock exchanges. Gold and silver prices are predicted to stay within a range or rise slightly today, with gold prices remaining stable despite Federal Reserve Chair Jerome Powell's testimony not altering expectations for US rate cuts. The market still foresees the anticipated pivot before the year ends.

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