Gold and Silver Bullion Report | 3rd July

According to data, exchange-traded funds increased their gold holdings by 10,748 troy ounces in the most recent trading session, resulting in total net sales of 4.53 million ounces for the year. This marked the fifth consecutive day of increase. The purchases cost $25.1 million based on yesterday's spot price. The overall amount of gold owned by ETFs decreased by 5.3 percent to 81.1 million ounces this year. Gold has increased by 13 percent in 2020 to $2,331.90 per ounce and by 0.2 percent in the most recent trading session. In the previous trading session, State Street's SPDR Gold Shares reduced its holdings by 46,250 ounces, making it the largest precious metals ETF. The market value of the fund's 26.6 million ounces totals $62 billion. ETFs reduced their silver holdings by 1.66 million troy ounces during the latest trading session, resulting in total net sales of 15 million ounces for the year. This marks the fourth consecutive day of decreases.

The mid-year outlook from the World Gold Council predicts that gold will trade within a specific range during the second half of 2024. The global economy, along with gold, appears poised for a triggering event. We think gold could be boosted by decreasing rates in developed countries attracting Western investments, along with ongoing support from worldwide investors seeking to hedge against growing risks amidst a calm stock market and ongoing geopolitical tensions.

While gold prices could stay within the same range as the past few months, there is a distinct possibility for gold to exceed expectations, especially with the support of Western investments. The report also cautioned that if central bank demand significantly decreases, interest rates stay elevated for an extended period, and Asian investor sentiment shifts, there could be a decline in the second half.

Key Perspective: Today, gold and silver prices are stagnant on the global stock exchanges. Gold and silver prices are anticipated to remain within a specified range or possibly increase slightly for the day, as gold prices have been limited to a narrow range for a fourth consecutive day. Traders are holding off until the release of US data, which could offer new insights into the Federal Reserve's interest rate cut timing. This week, upcoming data on factory orders and nonfarm payroll will likely provide more insight into the world's biggest economy and when the US central bank might start easing monetary policy as anticipated.