Gold has fallen more than US$100/oz over the past month, with the bulk of the decline occurring over two days last week.
Gold’s price has dropped by almost 7% since the end of May. Most of the move can be attributed to an increase in interest rates following last week’s US Federal Reserve (Fed) FOMC meeting. Gold’s reaction is not surprising given that it has experienced higher sensitivity to interest rates over the past year
While the gold market is a complex place, full of interesting dynamics and uses, nothing quite gets people's attention like the gold price.
- Chinese gold prices rose modestly in July
- Au(T+D)’s trading volume in July extended its June surge
- The local gold premium saw a much lower volatility
- Imports registered another decline, dropping to 55t in July
- Gold withdrawals from Shanghai Gold Exchange (SGE) experienced the first rise in four months
- The People’s Bank of China (PBoC) added another 10t to its gold reserves
Multiple drivers propelled gold investment in the first half of 2019. We expect this trend to continue in the second half of the year.