Gold spot prices are trading at $3,334.86 per ounce, registering a modest daily decline of $0.62. Silver experienced a more pronounced decline, trading at $37.76 per ounce, down $0.24 to start the day. The market pressure intensified following Thursday’s release of hotter-than-expected U.S. Producer Price Index (PPI) data, which showed a 0.9% monthly increase in July—far exceeding the 0.2% forecast and marking the largest jump since June 2022. This 3.3% annual PPI reading represents a three-year high, raising concerns about persistent inflation and reducing expectations for aggressive Federal Reserve rate cuts. Market participants had been pricing in a 96% probability of a September rate cut, but the inflation surprise has tempered those expectations, with odds now favoring a smaller 25 basis point reduction rather than the previously anticipated 50 basis points.
A comprehensive analysis from Zhongtai Futures, featured prominently on metals trading platforms, reinforces the bullish long-term outlook for gold despite recent corrections. The report, titled “Gold Bull Run Is Not Over Yet, Each Correction Is A Buying Opportunity,” presents a compelling case for continued precious metals strength based on structural economic shifts and central bank demand patterns. The analysis emphasizes that current global conditions create an ideal environment for gold appreciation, noting that “the global economy is still in an era where trade, political, and monetary orders all facing changes and restructuring that are unlikely to reverse in the short term.” The report identifies several key support factors: continued policy easing cycles, deglobalization trends accelerating through trade barriers, and persistent geopolitical tensions creating sustained economic uncertainty. Most significantly, the research highlights robust central bank buying as a critical price support mechanism. Despite a moderation in purchasing pace during Q2 2025, global central banks acquired 166 metric tons of gold, while China’s People’s Bank continued its strategic accumulation with 6 metric tons in Q2 alone, extending its buying streak to eight consecutive months. The World Gold Council data shows total gold demand surged by 45% in value terms to a record $132 billion in the second quarter, underscoring institutional confidence in the metal’s long-term prospects. The technical outlook remains constructive, with analysts identifying $3,200-$3,250 per ounce as the first support zone, while the core support level sits at $3,000-$3,100 per ounce. The report maintains that gold has significant potential to break above $3,500 per ounce in the second half of 2025, potentially setting new historical records. From a strategic perspective, the analysis concludes that “the gold bull market is still not over” and positions current price corrections as attractive entry opportunities for medium-term investors.
