Logo

U.S. rate cut expectations and global central banks' gold purchases will boost gold.

TraderKnows
TraderKnows
07-11

In a recent report released by TD Securities, they predict that gold prices will rise in the coming weeks, mainly due to central banks in multiple countries purchasing gold and the increasing expectation of interest rate cuts in the United States.

TD Securities stated in a report that it expects gold prices to rise in the coming weeks, supported by continued central bank purchases and clearer expectations of a U.S. rate cut.

TD believes that gold is likely to reach an average target price of $2,475 per ounce in the first quarter of 2025. Currently, spot gold prices are at $2,372.06 per ounce.

This week, the upward momentum in gold prices temporarily stalled due to reports that the People’s Bank of China stopped buying gold for the second consecutive month in June. This weakened the optimism for a rate cut driven by last week’s lower-than-expected U.S. non-farm payroll data.

However, TD pointed out that data showed the Reserve Bank of India, the National Bank of Poland, and the Czech National Bank were all buying gold this week, which has bolstered gold prices.

TD believes that central bank gold purchases, along with clearer expectations of a U.S. rate cut, could support gold prices in the coming months.

"As the official sector still appears interested in using gold to diversify their foreign exchange reserves, further investor purchases should drive gold prices to new highs when the timing of rate cuts becomes more predictable,” TD analysts wrote in the report.

In May this year, spot gold reached an all-time high of $2,450.06 per ounce, driven by increased safe-haven demand due to potential conflicts between Iran and Israel. However, gold prices did not remain at that level for long, quickly falling to a low of $2,280 per ounce, and slightly recovering in late June.

SKYPE TU

公众号2

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

The End

Wiki

Bank

A bank is a financial institution that provides various financial services, including accepting deposits, granting loans, payment and settlement, offering investment and wealth management products, foreign exchange transactions, and funds management.

Organization

Risk Warning

TraderKnows is a financial media platform, with information displayed coming from public networks or uploaded by users. TraderKnows does not endorse any trading platform or variety. We bear no responsibility for any trading disputes or losses arising from the use of this information. Please be aware that displayed information may be delayed, and users should independently verify it to ensure its accuracy.

Logo

Contact Us

Social Media

footer1