Gold prices were moderately higher on Thursday, but stayed within the previous day’s range as the markets awaited fresh drivers.
Prices rose as high as $2,392 an ounce before edging back down to just above $2,380 an ounce by late afternoon. That compared with around $2,365 an ounce in late trades on Wednesday.
The modest gains mean gold had regained the ground it lost on Wednesday, although prices were still holding within the range seen over the previous two days.
The markets were still buzzing with chatter about the recent surge to all-time highs of over $2,400 an ounce seen on April 12, which came despite a scaling back of bets on interest rate cuts by central banks this summer, rising US treasury yields so far in 2024, and tepid demand from retail investors and gold-backed ETFs.
A range of other factors may have been at work in driving the gains, including moderate central bank purchasing in recent months, but also heightened geopolitical tensions, with conflicts in Ukraine and Gaza, both of which carry risks of further escalation.
However, some sources have pointed to stronger than expected buying of gold on the Shanghai Futures Exchange in the first quarter of 2024 which may have played a major part in driving the hefty gains in recent weeks.
The markets will be watching to see if that’s a factor that will be sustained, or more of a short-term push that leaves the market exposed to a price pull-back.
Looking ahead, Friday will see speeches by central bank officials from the UK and US, as the markets try to gauge the outlook for monetary policy easing and the timing of any interest rate cuts. Further out, Monday will see the release of Euro Area consumer confidence figures for April, for an update on economic sentiment in Europe.
Frank’s experience covering the commodities markets spans 22 years, with a particular specialism in metals, carbon and energy markets. He has worked as a senior editor for S&P Global Commodity Insights (formerly Platts) and before this, at ICIS-LOR, a part of Reed Business Information (Reed Elsevier), where he covered the petrochemicals markets from 2003 to 2005.
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