Gold’s Calm After the Storm
Gold took a breather last week after hitting a high, as investors heaved a collective sigh at fresh economic data. It turned out that inflation was stronger than folks expected, giving the dollar a little boost and pushing Treasury yields higher.
Fed’s Future Moves: A Hangover?
- Markets are eyeing this week’s Fed decision and largely betting that rates will stay at 5.5%.
- If the Fed keeps a mellow tone, the dollar could turn weak, yields could drop, and that could give gold a hearty lift.
The upside comes not just from the U.S. side. Chinese demand is giving gold a solid hand‑shake, which could keep the rally alive.
China’s Gold Appetite
- Chinese gold ETFs added RMB 778 million—that’s about $109 million—for the third straight month in February.
- The total assets under management (AUM) hit a record RMB 31 billion (≈$4.3 billion).
- The People’s Bank of China bought another 12 tonnes of gold in February, giving it a buying streak of 16 months. Total reserves now top 2,257 tonnes.
All in all, gold’s looking solid: a stable price action, a potentially supportive dollar, and a Chinese market that’s just ready to keep buying. Stay tuned—prices could swing again once the Fed’s next move hits the headlines.
