RE: Gold price7 Jun 2024 16:28
“The second hit to gold and silver came on overnight news that China’s central bank did not add to its gold reserves in May. That really spooked the gold market bulls. “China has been buying for 18 months, supporting gold’s record rally to $2,450/oz last month. While China may be slowing, we anticipate ETF demand to return to the fore as U.S. Treasury yields fall, pushing safe-haven investors into bullion,” said broker SP Angel.”
“This is a temporary blip. It is hard to see the Middle East and Ukraine conflicts being resolved any time soon, and US/China tensions remain high. Gold’s fundamentals should improve. The recent $2,450 peak is lower, in real terms, than the 1980 one, which would have been around $3,000 in today’s prices.”