Analysts from Citi, Motilal Oswal, and Fitch BMI warn that gold prices may have exhausted their growth potential following an extended rally. Over the past year, the precious metal's value has surged by more than 40%. The asset is unlikely to sustain similar growth rates further.
According to an HSBC study, demand for gold remains elevated among various investor categories, including central banks and affluent individuals. Moreover, Kitco data shows that currency investments in many countries have declined by approximately 40%.
A release of strong jobs reports in the US failed to keep gold at lower levels this week. After falling sharply to a weekly low just below $3,250, gold began to climb back up.
According to World Gold Council (WGC) data, global central banks collectively increased their gold reserves by 20 tons in May. Kazakhstan was the most active buyer, accounting for 7 tons of this total.
According to a UBS survey, two-thirds of central banks are concerned that political pressure in the US could threaten the Federal Reserve’s independence. Nearly half of them say this might even lead them to rethink their holdings in US assets.
The CNY publication is expected
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