Gold: Strong central bank buying remains a supportive factor – ANZ

FXStreet Insights Team FXStreet

Hawkish comments from the Fed and a stronger USD weighed on Gold. Economists at ANZ Bank analyze the yellow metal’s outlook.

War-risk premium has faded

Gold edged lower as a stronger USD and a hawkish Fed weighed on investor demand for the precious metal. The war-risk premium has also faded as the Israel-Hamas war shows little signs of escalating.

However, strong central bank buying remains a supportive factor. China topped up its Gold holdings for a 12th straight month in October, with its reserves rising by about 740,000 ounces (~23t), according to official data. That takes total holdings to 2,215t.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD stays defensive below 1.3500 amid US-Iran tensions

EUR/USD grinds higher to 1.1450 as USD loses traction

Gold sticks to modest recovery gains near $4,000 amid Fed hike bets; not out of the woods

Bitcoin’s potential recovery in the second half hinges on these 4 catalysts

Bitcoin has fallen over 34% in the first half of this year as the King Crypto failed to capitalize on a good semester for risk assets despite the woes from the Iran war. With risk-loving investors increasingly looking at AI-related stocks and with no visible catalysts ahead, Bitcoin enters the second half of the year facing a crucial question: can it rebuild demand or will the correction deepen?

Asian stock markets mirror US tech sell-off, Nikkei plunges over 4%

Asian stock markets face a sharp sell-off on the last trading day of the week, tracking seeking negative cues from United States equity markets. US technology stocks fell sharply on Thursday as stocks of sophisticated chips extended their losses.

-0.4%: Why the biggest CPI drop since 2020 couldn't buy back a single cut

The June CPI fell 0.4% on the month, the largest one-month decline since April 2020, dragging the annual rate to 3.5% from May's 4.2% and snapping a three-month acceleration streak. Core prices went nowhere, flat on the month and down to 2.6% YoY, both under consensus.