Market Reviews

Gold continues to be bought

08.05.2024

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Yesterday at the American session, the investment bank Goldman Sachs, one of the largest in the United States, confirmed its forecast for gold, foreshadowing its possible rise to $2,700 per troy ounce by the end of 2024 with the potential to reach $3,130 amid increased demand from global central banks. China is particularly active in buying gold, which has been increasing its gold reserves for 18 months in a row. Gold reserves at the People’s Bank of China increased by 60,000 troy ounces last month, equivalent to about 1.87 tons, official data showed Tuesday. The total volume of gold reserves is now 2,264.3 tons.

In April, the price of gold reached record highs, rising above $2,400 per ounce. This growth was supported by strong demand from global central banks, among which the People’s Bank of China stands out. Government buying in the first quarter marked the strongest start to the year on record, according to the World Gold Council. Gold prices continued to rise despite factors such as a strong dollar and stable US inflation, causing traders to abandon hopes of interest rates falling this year. Continued demand from Chinese consumers, as well as increased purchases of gold as a safe-haven asset amid conflicts in Ukraine and the Middle East, also helped support prices for the precious metal.