kbr-research-notes
Gold Plunges 26% Yet Central Banks Buy 289 Tons… The Gold Price Outlook Is Unsettled
Based on the LBMA afternoon fixing price, gold fell approximately 26% from $5,405 on January 29 to $4,001.80 on June 25. The BIS analyzed that leveraged products, margins, and position liquidation amplified price volatility during the sharp decline in late January. While 45 tons flowed out of gold ETFs in the second quarter, central banks net-purchased 288.9 tons, the highest ever for the second quarter. The Bank of Korea has established a framework to purchase domestically produced gold, which must be distinguished from the actual completion of domestic physical gold purchases. Recently, the gold market has been complexly influenced by interest rate paths, reserve asset diversification, and geopolitical uncertainties rather than inflation itself.
Based on the LBMA afternoon fixing price, gold fell approximately 26% from $5,405 on January 29 to $4,001.80 on June 25. The BIS analyzed that leveraged products, margins, and position liquidation amplified price volatility during the sharp decline in late January. While 45 tons flowed out of gold ETFs in the second quarter, central banks net-purchased 288.9 tons, the highest ever for the second quarter. The Bank of Korea has established a framework to purchase domestically produced gold, which must be distinguished from the actual completion of domestic physical gold purchases. Recently, the gold market has been complexly influenced by interest rate paths, reserve asset diversification, and geopolitical uncertainties rather than inflation itself.
From $5,405 to the $4,000 Range: Three Economic Signals Sent by the Correction Phase International gold prices, which had been rising steeply, have undergone a significant correction this year.…
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