Renewed Western Demand for Gold “Rocket Fuel”

Gold prices remain firmly above $2,500, and silver has been able to hold onto the $30 level.

Bullion.Directory precious metals analysis 28 August, 2024
By Stefan Gleason
President of Money Metals Exchange

Market participants are now extremely confident in the kickoff of an extended Fed rate-cutting campaign in September, especially in light of weak employment numbers.

The stock market, however, continues to trade near its all-time highs — even as volatility increases. A correction or extended downturn in the stock market would likely provide a new catalyst for gold, but negative stock market action has obviously been unnecessary for gold to rally.

Meanwhile, Western demand for physical bullion and even ETF shares backed by bullion has actually remained modest for most of the year — especially as compared to 2020-2023.

It’s demand from Asia as well as central banks that has been the driver for higher gold prices since late last year.

A pickup in buying activity in North America and Europe would, however, would add rocket fuel to the existing very strong global demand picture — and silver would be expected to rise with gold as well.

In other news, the grand opening of Money Metals’ massive new depository in Idaho — a facility that’s more than TWICE the size of the U.S. Bullion Depository at Fort Knox — has captured the attention of the gold industry, as well as numerous “mainstream” news outlets.

Building and operating the largest precious metals depository in North America has further solidified Money Metals’ place at the top of the industry. Learn more about gold and silver storage here.

This article was originally published here

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