Gold’s Tug‑of‑War: A Quick Rewind of the Metal’s Recent Moves
Yesterday, gold tapered off after a two‑day sprint that saw it march higher. Still, the overall trend stays bullish, thanks to whispers of US rate cuts that investors can’t help but chase.
Why the Cut Anticipation Grows
- Recent inflation numbers have cooled, giving Fed folks a bit more breathing room.
- The market now lines up September as a prime candidate for the first rate cut of the year.
- Every time the Fed edges toward easing, gold gets a boost as a safety blanket.
Geopolitics: Still a “Safe Haven”?
When the world feels a little shaky, gold springs into action. The latest geopolitical flare‑ups have kept the metal’s safe‑haven status shining bright. Meanwhile, demand keeps its sturdy hold, powered by:
- Central banks buying up bullion.
- China’s relentless love for gold.
- India, the second‑biggest gold consumer, adding fresh weight to its reserves.
Since January, the Reserve Bank of India has pumped 25 tonnes into its vaults—bringing the total to 828.6 tonnes.
India’s Gold ETFs: Outflows but Still Growing
Even though April saw a net outflow from Indian gold ETFs, the overall assets under management climbed 5% from the previous month and surged 43% year‑on‑year.
Hearing the Fed’s Pulse
The spotlight shifts to the Federal Reserve. Investors are itching to see the minutes from the last policy meeting, hoping for clues on future monetary direction. This week also hosts a lineup of Fed officials’ speeches, all stressing the need for more time to gauge if inflation is truly pulling in the right direction and whether current restrictive measures are doing their job.
