Gold and Silver Bullion Highlights | 24th June 2024

Gold prices dropped by up to 1.3% following better-than-anticipated manufacturing and services statistics, causing traders to reconsider the Federal Reserve's rate reduction schedule. Federal Reserve officials indicated last week that they anticipate lowering interest rates only once this year, as opposed to the three cuts that were predicted in March. Investors have been seeking indications of a gentle economic slowdown to support potential US interest rate decreases. Gold hit a record high last month and is still up by 13% this year. 

Gold could potentially do better than silver with an increase in US unemployment, a decrease in stock market stability, and high interest rates. The fact that the unemployment rate has never stayed as low as 3.4% in 2023 without going above 6% (since 1947) might support gold over silver, as per a Bloomberg Intelligence senior analyst.

Data compiled by Bloomberg shows that exchange-traded funds reduced their gold holdings by 191,571 troy ounces in the recent trading session, resulting in total net sales for the year of 4.97 million ounces. It was the largest decrease in one day since May 2 and marked the fifth consecutive day of falling numbers. Total sales amounted to $452.1 million. 

The amount of gold in ETFs dropped by 5.8% this year to 80.6 million ounces. Gold rose by 14 percent this year to $2,360.09 per ounce and increased by 1.4 percent in the most recent session. In the previous session, the largest precious metals ETF, SPDR Gold Shares from State Street, increased its holdings by 268,250 ounces. investment strategy focuses on generating long-term returns through a diversified portfolio of global assets.

The market value of a combined 26.8 million ounces is $63.3 billion. In the most recent trading session, ETFs reduced their silver holdings by 560,829 troy ounces, making the total net sales for this year reach 10.7 million ounces.

Core Perspective: The price of gold and silver remains stable today on the global market. We anticipate that the prices of gold and silver will remain within a certain range or may slightly increase for the day. Gold prices are stable following a small decrease last week, as new information indicates strength in the US economy, which lowers the chances of the Federal Reserve taking action.

*There will be multiple interest rate cuts from the Reserve this year.