Gold trades to the downside ahead of tomorrow’s rate decision
WGC reports strongest gold demand in over a decade led by central banks
(USAGOLD – 1/31/2023) – Gold is trading to the downside this morning ahead of tomorrow’s Fed decision and press conference. It is down $9 at $1917. Silver is down 27¢ at $23.42. Wall Street expects the Fed to strike a more dovish tone, but there is a minority worried about a hawkish surprise. The World Gold Council reports the strongest demand for gold in over a decade. “Colossal central bank purchases,” it says in its full-year demand trends report for 2022, “aided by vigorous retail investor buying and slower ETF outflows, lifted annual demand to an 11-year high.” Investment demand for gold coins and bars grew by 10% to 1,107 tonnes. Central bank buying was at a 55-year high of 1,136 tonnes.
Chart courtesy of the World Gold Council • • • Click to enlarge