News

Caution prevailed during the trading session for gold, which traded in the $4,110 – $4,120 per ounce range. Following a prolonged rally and reaching recent record highs, the precious metal recorded a very modest pullback (-0.3%), stabilizing within a wait-and-see channel. Market participants’ caution is primarily focused on the upcoming US inflation readings (CPI) and interest rate signals. The prospect of interest rates remaining elevated for longer (“higher for longer” scenario) increases the opportunity cost of holding a non-yielding asset like gold.

[Source: Sterlina Oro]

Today, gold is trading virtually flat at around €120.70 per gram (approx. $4,185 per ounce). Markets remain in a wait-and-see mode ahead of the upcoming US inflation data, keeping prices stable near record high levels, supported by strong safe-haven demand and continued central bank buying.

[Source: OroElite]

A historic shift is underway in global central bank policies regarding the gold market. To hedge against geopolitical instability and diversify their reserves, several monetary institutions have abandoned the rule of allocating a fixed percentage of their financial portfolio to the precious metal.The new approach focuses on setting purchase targets directly in physical tons. This strategy leads central banks to buy bullion at a steady pace, regardless of market high prices. This paradigm shift creates a solid, structural baseline demand that is set to support gold prices over the long term.

[Source: World Gold Council]