Gold Hits Record Highs Amid Market Uncertainty – WGC
Meanwhile, China’s economic momentum slowed, adding to global uncertainty.
SEATTLE (Scrap Monster): Global markets delivered mixed signals last week, shaped by divergent central bank actions and uneven economic data, noted the World Gold Council (WGC).
The European Central Bank and Nordic central banks kept interest rates unchanged, while the Bank of England cut rates and the Bank of Japan raised borrowing costs. In the United States, job growth rebounded and inflation softened, but consumer spending and housing activity remained constrained. Meanwhile, China’s economic momentum slowed, adding to global uncertainty.
Gold prices extended their broader rally, supported by technical momentum, despite a brief pause. After five consecutive weeks of gains, the LBMA Gold Price PM settled at US$4,338 per ounce, marking a modest 0.2% week-on-week decline, though year-to-date returns remain elevated at 66%.
Last week, slower gold ETF inflows and a slightly stronger dollar weighed on prices, partially offset by lower bond yields. Despite this, technical indicators remain constructive, with no clear signal to rule out a move toward new record highs.
Looking ahead, holiday-season trading volumes may soften, historically declining across exchange-traded, OTC, and ETF markets in December. Persistently elevated geopolitical tensions, alongside uncertainty over future US Federal Reserve leadership, continue to underpin safe-haven demand for gold, reinforcing its positive medium-term outlook.
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