Gold and Silver Bullion Highlights | 12th July

Gold surged over $2,400 per ounce on Thursday, nearing the record price achieved in May, following a surprise decline in US consumer prices that raised expectations of the Federal Reserve's imminent interest rate cuts. Gold prices increased by up to 2.3% following the release of Bureau of Labor Statistics data indicating a 0.1% decrease in consumer prices, the first drop in over four years. Central banks, investors seeking haven assets during geopolitical tensions, and Chinese consumers purchasing goods have all contributed to the rise in prices. Data from Thursday shows that inflation is decreasing once more following a spike at the beginning of the year, with overall economic activity showing signs of slowing down.

According to Bloomberg data, exchange-traded funds reduced their gold holdings by 39,937 troy ounces during the latest trading session, bringing total net sales for the year to 4.11 million ounces. Yesterday's spot price was $94.7 million in sales. The amount of gold in ETFs decreased by 4.8 percent to 81.5 million ounces this year.

Gold has increased by 15 percent to $2,371.26 per ounce this year and by 0.3 percent in the most recent session. State Street's largest precious metals ETF, SPDR Gold Shares, kept its holdings unchanged during the most recent session. The market value of the fund's 26.8 million ounces totals $63.5 billion. In the most recent trading session, ETFs reduced their silver holdings by 468,860 troy ounces, resulting in total net sales of 9.84 million ounces for the year.

Key Perspective: Gold and silver prices are slightly down on the global stock exchanges today. Their prices are forecasted to remain within a range or slightly increase for the day. Gold prices have stabilized after surpassing $2,400 per ounce in the previous session due to lower US inflation than expected, leading to increased speculation. The Federal Reserve will soon begin reducing rates.