Gold and Silver Bullion Highlights | 1st July

1. Gold experienced fluctuations on Friday as traders considered recent US inflation data showing a need for the US Federal Reserve to lower interest rates. Bullion prices increased by up to 0.5% to $2,339.75 per ounce before retracting the rise. The metal is still set to achieve its third straight quarterly increase. Gold has historically had a reverse relationship with real yields, but that connection has started to weaken. Gold's rise in value in recent months has been fueled by anticipation of Federal Reserve interest rate reductions, along with purchases made by central banks and a surge in demand as a safe investment choice during times of geopolitical uncertainty. According to a recent survey by the World Gold Council, many central banks intend to purchase gold in the upcoming year.

2. According to weekly CFTC data on futures and options, money managers have reduced their optimistic gold positions by 4,823 net-long contracts to 184,710. The number of long-only positions decreased by 3,007 lots to 197,885 by the week ending on June 25. Short positions increased by 1,816 lots to reach 13,175. The total for short positions reached a three-week peak. According to weekly CFTC data on futures and options, money managers have added 831 net-long positions to their bullish silver bets, bringing the total to 32,990. The bullish position reached its peak in three weeks. Long positions decreased by 2,428 lots to 51,426 by the week ending June 25. The total of long-only was the least in 15 weeks. Short positions decreased by 3,259 lots to 18,436. The total for short positions was at its lowest point in 14 weeks.

3. According to data, exchange-traded funds increased their gold holdings by 38,696 troy ounces during the latest trading session, bringing total net sales for the year to 4.58 million ounces. This marked the third consecutive day of expansion. The buys amounted to $90.1 million based on the spot price from yesterday.

4. ETFs' total gold holdings decreased by 5.4 percent to 81 million ounces this year. Gold has increased by 13 percent this year to reach $2,327.73 per ounce and rose by 1.3 percent in the most recent session. In the previous session, State Street's largest precious metals ETF, SPDR Gold Shares, kept its holdings stable. The market value of the fund's 26.7 million ounces is equivalent to $62 billion. ETFs reduced their silver holdings by 997,317 troy ounces in the most recent trading session, totaling net sales of 12.4 million ounces for the year.

Core perspective:  Gold and silver prices are steady today in the global markets. We anticipate that gold and silver prices will remain rangebound or slightly increase throughout the day. Gold prices remained steady as traders speculated on whether the Federal Reserve would consider implementing monetary easing due to soft US data.