Gold prices soar on rate optimism and sovereign buying, India’s import controls sap silver demand – Heraeus - KITCO

Gold prices soar on rate optimism and sovereign buying, India’s import controls sap silver demand – Heraeus - KITCO

Source: KITCO

DW NOTE

Gold rallied this week despite already sitting 17% below its January crisis peak. The buying is real — central banks accumulated 290 tonnes in Q1 alone — but the price action suggests traders are positioning for rate cuts that may not arrive. The Fed held at 3.5% in July even as the 10-year yield climbed to 4.69% and June CPI printed at 3.5%. That's not an environment where monetary accommodation rides to gold's rescue.

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