Gold and Silver Bullion Highlights | 8th July

Bullion prices in New York rose by 1.4% to $2,389.35 per ounce on Friday, following reports from the US Bureau of Labor Statistics indicating a slowdown in US hiring and wage growth in June, along with a slight increase in the jobless rate. Gold remained within a relatively small trading range over the past month, but surged 2.7% this week due to increasing expectations of a rate cut in September. Silver rose by 3.3%, while the Bloomberg Dollar Spot Index and 10-year US Treasury yields both looked set to decrease for the week.

The central bank decided to halt the increase in reserves in May, marking the end of an 18-month purchasing streak contributing to record-high gold prices. Certain analysts remain convinced that buying will pick up again as the world's second-largest economy looks to diversify its reserves and protect against currency devaluation. A World Gold Council report indicates that approximately 20 central banks plan to increase their gold holdings next year due to increased geopolitical and financial risks. The rise in gold prices may have stopped people from buying. In May, the valuable metal reached its highest price ever, surpassing $2,400 per ounce. However, it has since decreased as investors reduced their expectations for US interest rate reductions in the current year.

According to data, exchange-traded funds increased their gold holdings by 61,085 troy ounces during the latest trading session, bringing total net sales for the year to 4.29 million ounces. This marked the third consecutive day of expansion. The purchases equated to $144 million based on the previous spot price. Overall ETFs saw a 5 % decrease in gold holdings this year, dropping to 81.3 million ounces, the highest level recorded since April 22. Gold increased by 14% in the current year, reaching $2,356.69 per ounce, and rose by 1.1 % in the most recent trading session. State Street’s largest precious metals ETF, SPDR Gold Shares, increased its holdings by 46,240 ounces during the most recent session. The market worth of the fund is $63.3 billion, based on its 26.8 million ounces total. In the most recent trading session, ETFs increased their silver holdings by 4.31 million troy ounces, resulting in total net sales of 5.83 million ounces for the year.

Key Perspective: Gold and silver prices are currently down on the global exchanges. Gold and silver prices are forecasted to stay within a certain range or slightly increase for the day, as gold prices stabilized following the biggest weekly gain in three months, with attention on central bank buying trends.