In the past few weeks, gold has been trading in the range of $1180 – $1210. It has remained in this range since the FOMC decision to hike the rates.
The gold market has been helped by the market expectation of another interest rate increase this year, even though President Trump has shared his concerns about the impact of one more rate increase this year, and has criticised the Fed on the pace of the interest rate increase.
In other news, the IMF yesterday announced that they have cut their global economic growth, which should have made gold trade higher. However that wasn’t the case, and gold is still trading within range.
There has been a reasonable physical demand in the Middle East and Turkey, and the expectation is that the demand will remain sustained in the coming weeks.
Gold ETF has added 37,655 ounces to their holdings in the last trading session; meaning so far this year total ETF gold holding has fallen by 2% to 67.1 million ounces.
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