Gold prices rose on Monday after China’s central bank restarted its buying program following a six-month pause, with spot prices rising 0.92% to $2,658.20 per ounce.
The precious metal has gained 0.84% over the past month, continuing its strong performance after reaching a record high of $2,790.15 on October 31. The rally has put gold on track for its best year since 2010, with nearly 28% gains year-to-date.
China’s return to gold buying, which had halted its 18-month buying streak in May, signals renewed institutional interest in the precious metal. Strong central bank buying, coupled with monetary policy easing and geopolitical tensions, has driven gold to multiple record highs this year.
Traders are now focused on US inflation data due Wednesday, which could influence the Federal Reserve’s rate decisions. Gold, which typically benefits from lower interest rates, has found support from growing expectations of rate cuts, with traders currently pricing in an 83.4% chance of a quarter-point reduction this month.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
Bank Of America Lowers Gold Price Target To $2000? – The Daily Dive feat John-Mark Staude
Returning to the Daily Dive today is that of John-Mark Staude of Riverside Resources (TSXV:...