>> THE F*CKING F*CKS...
we might be able to claim the consolation prize and sooner than we reckoned
Message 35013352 <<re <<Let's save money>>>>
Message 35013376 <<Trillions of dollars for the asking, and the Trump knows how best to ask, again, once more, twice over, three times good, one for the road, and keep asking>>
finance.yahoo.com
Gold demand hits record levels as central banks buy at 'eye-watering' pace
Ines Ferré · Senior Business Reporter
Thu, February 6, 2025 at 4:59 AM GMT+8 2 min read
Gold demand is surging to new records, driven by accelerating purchases from central banks as well as investors seeking a safe haven amid the threat of escalating tariffs.
On Wednesday gold hit record highs for the fifth consecutive day, surpassing $2,877 per ounce in trading, as futures ( GC=F) also climbed to new highs above $2,900.
"Central banks continued to hoover up gold at an eye-watering pace" in 2024, according to a report by the World Gold Council, as purchases accelerated sharply in the fourth quarter. Total demand last year reached a new high of 4,974 tonnes.
Joe Cavatoni, market strategist at the World Gold Council, said central bank purchases were driven by "concerns about ongoing inflation, geopolitical tensions, and needs to add diversification to their portfolios."
The Federal Reserve's rate-cutting cycle, which began last year, prompted global inflows into physical-backed gold exchange-traded funds (ETFs), including from Western investors. A lower interest rate environment is bullish for gold since it doesn't have to compete with yield-bearing assets.
Global ETF demand remained steady, with 2024 marking the first year since 2020 in which holdings were essentially unchanged, in contrast to the heavy outflows of the prior three years, according to the report.
Gold is up roughly 8% year to date after gaining over 27% in 2024, outpacing the S&P 500's (^ GSPC) gain of 23.1%.
In late January, Goldman Sachs analysts reiterated their bullish call on the precious metal as the threat of escalating tariffs drives continued demand.
“We reiterate that long gold remains our highest conviction trading recommendation across commodities, driven by structural (Central Bank buying) and cyclical (ETF buying) factors,” the analysts said, reiterating a $3,000 per troy ounce price forecast for the second quarter of 2026.
While US tariffs announced over the weekend against Mexico and Canada have been delayed, additional 10% tariffs on select imports from China went into effect on Tuesday.
As for 2025, demand for gold will likely depend on US policy, including Federal Reserve rate cuts and the impact of tariffs, said Cavatoni.
"The case remains strong for central banks to remain at the table," Cavatoni told Yahoo Finance.
As for gold ETF inflows, "if we see rate cuts reintroduced, then we'll likely see more demand from Western investors in ETFs," he added. |
