GJ Town India

  Gold gains a 3% weekly & a 52% annual; up for the 8’ serial week   Recently, Dr. Renisha Chainani, Head- Research, Augmont said in the Weekly [6 October-10 October] Analysis that, gold crosses $4000 and silver touches $50, what next? With a 3% weekly gain and a 52% annual gain , gold prices have risen for the eighth consecutive week due to concerns about the global economy, persistent geopolitical unpredictability, and growing anticipation of additional US interest rate cuts.   Last week, spot gold jumped beyond the $4000 psychological barrier, driven by heightened tensions between Washington and Beijing after US President Trump said there was no reason to meet with China's Xi Jinping in South Korea as scheduled in two weeks and that he was ready to raise duties on Chinese imports by 100%.   With a record high of $50 and its eighth consecutive weekly gain, silver prices have increased by around 75% this year due to strong demand for safe-haven assets and ongoin...

  With emerging market demand softening, who drives gold next   Recently, World Gold Council [WGC] said, Stubborn stagflation about gold in their published, Gold Market Commentary. The report suggests further, the relationship between the price of gold and its core drivers shifts over time, sometimes reflecting who is most active in the market. For example, US real interest rates (opportunity cost) were tightly linked to movements in gold between 2007 and 2022.   Last month we suggested that one reason for gold’s decoupling from rates post 2022 was the preponderance of emerging market demand from central banks and other investors, rather than a breakdown in US investor relationship with rates.   Now that central banks and Asian investors have stepped back a bit, as indicated by our Gold Demand Trends data, local premia and intraday session returns, a tighter gold-rates relationship could re-establish itself and Western investors (particularly the US) could become mor...