Gold saw a 1.77% increase to close at 71,375, fuelled by increasing hope for a September rate cut in the US. However, the market’s expectations have cooled, tempering expectations for rapid easing by the Federal Reserve due to recent strong economic statistics. are inclined to agree to a rate decrease next month. The gold market is feeling positive as a result of this change.
The Central Bank of China granted new import quotas to several banks in August, indicating that demand would likely pick up despite the high price. This follows a two-month hiatus in new quotas brought on by weak physical demand in an optimistic market.
For the third straight month, the People’s Bank of China (PBOC) refrained from increasing its gold reserves in July, keeping its holdings at 72.8 million fine troy ounces. A recent price spike in gold forced dealers in India to give discounts of up to $3 per ounce, which discouraged retail sales.
Compared to the previous week, when a premium of $9 was offered, this was a huge change. Discounts were offered in China, Singapore, and Japan, and similar patterns were noted in other important Asian markets.
