Western gold investors watching the Fed while Chinese demand dominates the market – Natixis’ Dahdah – by Neils Christensen (Kitco News – May 4, 2024)


(Kitco News) – The gold market has been holding significant gains since the start of the year, but the momentum behind the bullish drive has dried up as investors once again focus on the Federal Reserve’s monetary policy.

The gold market has been consolidating around $2,350 an ounce for the last three weeks as the Federal Reserve signals a reluctance to start a new easing cycle with inflation stubbornly elevated. However, one bank analyst said that U.S. monetary policy is becoming a secondary factor as Asian markets evolve from price-taking to price-setting.

In his latest commentary on the gold market, Bernard Dahdah, precious metals analyst at Natixis, said that Asian markets have seen a significant evolution since 2008.

Dahdah said that in 2001, the Chinese gold market became deregulated; however, it wasn’t until the Great Financial Crisis and concerns over U.S. debt that the central bank and Chinese consumers started looking at gold as an attractive asset.

For the rest of this article: https://www.kitco.com/news/article/2024-05-14/western-gold-investors-watching-fed-while-chinese-demand-dominates-market