EBC Markets Briefing | Bullion risks pullback on a small rate hike

Gold stayed close to last week's record high, up 25% this year and breaking multiple records as a top-performing commodity.

Gold traded near the record high it hit last week. The precious metal has been one of the strongest performing major commodities this year, surging by about a quarter and hitting successive records.

Goldman Sachs reiterated its optimistic outlook on gold prices on Monday, citing central bank demand and the imminent interest rate cut from the Fed at its policy meeting this week.

Gold may face a minor, near-term setback in the case of a 25-bp cut this week, but the metal will subsequently rally to a record aided by rising flows into bullion-backed exchange-traded funds, according to the bank.

Global holdings in bullion-backed ETFs have rebounded in recent months after sinking in mid-May to the lowest since 2019, according to a Bloomberg tally. But they remain about 25% below the peak set in 2020.

China's central bank held back on buying gold for its reserves for a fourth straight month in August, official data showed. The central bank was the world's largest single buyer of gold in 2023.

Analysts expect to resume purchases at some point despite high prices due to political, rather than economical motivations, such as its desire to be less dependent on the greenback as a reserve asset.

Bullion lost momentum at $2,590 so buyer will hardly gain acceptance above the level in the short term. That being said, its bullish bias was evident with the price well below 50 EMA.

EBC Institute Perspectives Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC International Business Expansion or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Réglementation: FCA (UK), ASIC (Australia), CIMA (Cayman Islands)
read more
Why Silver could be the precious metal of 2025

Why Silver could be the precious metal of 2025

The gold bar is metallic yellow and slightly behind the silver bar, which is metallic white and positioned in front. Gold may still be the headline act, but silver’s no longer content playing second fiddle. In 2025, silver isn’t just glittering - it’s surging forward as one of the most exciting metals on the market.
Deriv | il y a 1
Risk-on sentiment fades as tariffs return to the spotlight 

Risk-on sentiment fades as tariffs return to the spotlight 

Dollar surrenders gains posted after robust labour market report; Trump celebrates US budget bill approval; scheduled to sign it today; Most Fed members feel more comfortable as July rate cut is priced out; Oil steadies near $66, gold rally retains momentum;
XM Group | il y a 1
ATFX Market Outlook 4th July 2025

ATFX Market Outlook 4th July 2025

The U.S. economy added 147,000 jobs in June, beating expectations of 110,000, while the unemployment rate fell to 4.1%. Traders are now betting that the Fed is unlikely to cut rates before September. Meanwhile, the House narrowly passed Trump's major fiscal bill by a vote of 218 to 214. U.S. stocks rallied on Thursday, hitting fresh record highs.
ATFX | il y a 1
Nonfarm payrolls take center stage

Nonfarm payrolls take center stage

Slide in US private payrolls raise concerns about NFP miss - US strikes trade deal with Vietnam ahead of July 9 deadline - Pound feels the heat of fiscal shenanigans - S&P 500 hits fresh record high ahead of jobs report
XM Group | il y a 2
Rate Shifts Steer FX Markets as Silver Holds Strong

Rate Shifts Steer FX Markets as Silver Holds Strong

On July 3, silver stays firm above $35.40 as Fed cut bets persist. EUR/USD holds near 1.1800, while GBP/USD lingers near 1.3585 ahead of UK jobs data. JPY strengthens after BoJ signals a hawkish pause. AUD/USD slips on weak trade surplus. Focus turns to US NFP and ISM data for market direction before the US holiday break.
Moneta Markets | il y a 2