China’s central bank refrained from gold purchases to its reserves for a second consecutive month in June, official data showed on Sunday. The pause by the People’s Bank of China (PBOC) started in May, when spot gold prices hit a record high. The previous 18 months of consistent buying by the PBOC, along with demand … Read more
The balmy days of dovish monetary policy that fuelled a rally in emerging-market bonds looks to be over as central banks across the developing world turn more hawkish. Returns from emerging-market local-currency debt are trailing their dollar-denominated peers by the most in two years as resurgent inflation has damped the prospect of further interest-rate cuts … Read more
Central banks cagey about joining the global interest-rate cutting cycle may reveal themselves this week with a quartet of decisions in advanced economies. Days after the Federal Reserve pared back projections for US monetary easing this year, policymakers from the UK to Australia are likely to signal that they’re still not convinced enough about disinflation … Read more
Buoyed by rate cut expectations after the Bank of Canada and the European Central Bank (ECB) cut rates earlier this week, spot gold rose to $2,387 on Friday, the highest level since May 22. However, the metal crashed on a robust US nonfarm payroll report. Spot gold closed with a loss of 3.49% at $2,294 … Read more
Central banks worldwide are playing a pivotal role in driving the ongoing bull run in gold prices. This article aims to dissect the intricate connection between central bank actions and the surge in gold prices, shedding light on the factors contributing to this phenomenon. Understanding Central Banks’ gold accumulation Diversification Strategy: Central banks are actively … Read more
Spot gold tested a new lifetime high last week due to a combination of factors that have converged to propel the demand for the yellow metal. Multiple catalysts like US rate cut speculation, China’s economic stimulus, and renewed geopolitical tensions attributed to the rise in prices. Prices on the London spot market surged near to … Read more
Global central bankers fretting about geopolitics just got another sharp reminder overnight about the potential threat that the Middle East poses to their inflation fight.In the same week that multiple monetary officials meeting in Washington said they’re on the lookout for potential oil shocks that could reignite consumer-price growth, Israel’s attack on Iran on Friday … Read more
Frontier markets have embarked on aggressive policy shifts, and investors in local-currency bonds are starting to reap the benefits. Central banks across key frontier economies including Kenya, Nigeria and Egypt have hiked policy rates significantly in recent months, while also implementing steps to liberalise markets – such as Nigeria’s move to allow free trading in … Read more
Mumbai: Investors can use the fourth and final tranche of sovereign gold bonds (SGBs) this financial year to diversify the overall portfolios in line with their long-term asset allocation strategy. Buying of gold by central banks and geopolitical risks will draw investors to risk-free assets and, given this, wealth managers say investors could allocate 10% … Read more
