Daily Gold Market Report

China’s Dual Role in Gold Market:
Central Bank Purchases and Consumer Demand Drive Prices

(USAGOLD – 5/8/2024) Gold prices are slightly lower this again morning and continue to remain range bound this week above $2300/oz. Gold is trading at $2309.46, down $4.64. Silver is trading at $27.27, up 3 cents. China has continued its significant gold buying for the 18th consecutive month, with the People’s Bank of China (PBOC) purchasing 60,000 troy ounces in April, despite a slowdown in acquisitions due to record high prices. This ongoing trend is part of a broader movement where China remains a major player in the bullion market, with the World Gold Council noting this period as the strongest on record for central bank gold purchases. Additionally, the consumer demand for gold in China has surged, driven by a lack of confidence in traditional investments and ongoing economic challenges. Despite high global gold prices and strong signals from the Federal Reserve regarding interest rates, gold’s appeal remains undiminished, largely influenced by Chinese market dynamics. This robust demand from both the central bank and consumers in China underscores the country’s significant impact on global gold market trends.