Gold prices surged to new all-time highs, driven by China’s recent monetary stimulus and global market dynamics. Here’s a breakdown of the key points:
📈 Gold Hits Record Highs: Gold reached a new peak of $2640 per ounce, driven by China’s economic measures and strong demand in major markets.
🇨🇳 China’s Impact on Gold: The People’s Bank of China announced monetary stimulus, lowering interest rates and injecting ¥1 trillion ($142bn) into financial markets. This spurred gold prices in Shanghai, rising 23.7% in 2024.
🏙️ Stock Markets React: China’s stock markets saw a 4.3% jump, with the Shanghai and Shenzhen indexes leading gains, and Hong Kong’s Hang Seng Index also up by 4%.
💰 Gold Prices by Currency: Gold prices hit new highs in Euros and Dollars, with London bullion up 27.3% in 2024. However, prices in the UK and Japan lagged behind previous records.
🛑 Weak Physical Demand: High gold prices have slowed physical demand, with coin and bar purchases declining, especially in China where domestic prices are at a significant discount.
🛢️ Oil and Other Commodities: Crude oil rebounded to $75 per barrel, driven by China’s economic stimulus. However, platinum and palladium remain down for the week.
📊 Market Speculation Drives Prices: Analysts cite momentum and technical buying as key drivers for gold’s continued rise, with expectations of more interest rate cuts fueling the rally.
🪙 Silver Prices Struggle: Silver added 20 cents per ounce but remains 5% below its May 2024 high, far off its historic peaks.
🔻 Platinum & Palladium Decline: Platinum dropped 11.3% below its 2024 high, while palladium showed a slight recovery, up 23.5% from last month’s low.
🏦 Future Outlook: Analysts expect continued resistance at current gold price levels, with physical demand remaining weak amid soaring prices.