Gold and Silver Bullion Highlights | 2nd July

Gold remained stable yesterday as markets prepared for a week filled with US economic data that will provide further insight into the possibility of interest rate reductions by the Federal Reserve. Bullion prices stayed relatively stable following a 0.2% increase last week. Gold has increased for three quarters in a row, marking its most powerful performance since the pandemic in 2020. The valuable metal has been backed by forecasts of interest rate reductions by the Fed, along with purchases by central banks.

According to data from Bloomberg, exchange-traded funds increased their gold holdings by 41,401 troy ounces during the most recent trading session, totaling net sales of 4.54 million ounces for the year. This marked the fourth consecutive day of increase. The purchases were worth $96.3 million based on the previous spot price. This year, the total amount of gold in ETFs decreased by 5.3 percent to 81 million ounces. Gold's price increased by 13 percent this year to $2,326.75 per ounce and saw minimal fluctuations in the most recent trading session. In the previous session, State Street's SPDR Gold Shares, the largest ETF for precious metals, kept its assets stable. The total amount of ounces in the fund is equivalent to $62 billion in market value. ETFs reduced their silver holdings by 939,522 troy ounces during the recent trading period.

Banks are eager to praise gold for its current and future potential as the second half of the year begins. That belief, which is exceptional compared to other things, appears to be justified as the valuable metal is highly likely to reach new peaks by the end of the year. Keep in mind that gold surged in the first half of the year, reaching a new high, despite the Federal Reserve's decision to not change direction, the strengthening of the US dollar, an increase in US Treasury 10-year yields, and a decrease in holdings of gold-backed ETFs. Its impressive performance is largely attributed to central bank purchases and extra backing from Asian buyers looking for security amid their weakening currencies.

Basic perspective: Gold and silver prices are stable in the global markets today. Gold and silver prices are anticipated to remain within a range or slightly increase today, with gold prices staying in a narrow trading range for the third consecutive day, as traders await US economic data that may provide insight into when the Federal Reserve might shift to monetary easing. Wednesday's report on factory orders and Friday's release of nonfarm payrolls could provide a better understanding of the US economy and when the Fed might make anticipated cuts.