Gold and Silver Bullion Updates | 27th June

Gold dropped for the second consecutive day after a Federal Reserve official made bullish remarks that reduced expectations for immediate monetary stimulus. Bullion fell by 0.9% on Wednesday following a 0.6% drop on Tuesday, with Fed Governor Michelle Bowman pointing out potential risks to inflation and emphasizing the importance of maintaining high borrowing costs. Gold prices have decreased by approximately 5% since reaching a record high last month, with spot gold trading at $2,298.23 per ounce.

According to data from Bloomberg, exchange-traded funds increased their gold holdings by 8,932 troy ounces in the most recent trading session, reaching a total of 4.69 million ounces in net sales for the year. The purchases amounted to $20.7 million based on yesterday's current price. ETFs' total gold holdings decreased by 5.5 percent to 80.9 million ounces this year. Gold increased by 12% to $2,319.62 per ounce this year and declined by 0.6% in the most recent session. During the previous session, the largest precious metals ETF, SPDR Gold Shares from State Street, held onto its assets. The market worth of the fund's 26.7 million ounces is $61.8 billion. In the most recent trading session, ETFs increased their silver holdings by 5.96 million troy ounces, totaling 8.31 million ounces in net sales for the year.

The Treasury market is returning to normal after a record two-year period of short-term debt yields surpassing longer-term yields. The US election cycle adds another layer to the mix, as the first presidential debate between President Joe Biden and former President Donald Trump is scheduled for Thursday. Increased uncertainties and potential dangers on the campaign trail could act as an additional stimulus for shifting the market trend and benefiting investors who believe in a return to a typical rate structure, a belief that has not yet proven successful during the Fed's period of inaction

Key Perspective: Gold and silver prices are staying unchanged today on the global stock exchanges. Gold and silver prices are predicted to range-bound or slightly decrease for the day due to gold prices stabilizing following two days of decreases, amid decreasing optimism about the Federal Reserve turning to monetary easing soon.