Editor’s Note
This article discusses the recent rebound in gold and silver prices, driven by market anticipation of key U.S. economic data and Federal Reserve policy signals.
On the evening of February 18th, international precious metal prices continued to rise, with spot gold once again surpassing $5000 per ounce, recording an intraday increase of over 2.5%.
According to CCTV News, as of February 18th local time, the market was awaiting the release of the Federal Reserve’s January monetary policy meeting minutes and key US inflation data to gauge the direction of Fed policy.
Currently, the CME FedWatch Tool indicates that the market expects a high probability of the Fed initiating interest rate cuts in June. Additionally, gold and silver prices experienced a technical rebound after a significant decline. Coupled with uncertainties surrounding US-Iran negotiations and Russia-Ukraine peace talks, safe-haven demand has also provided some support for precious metal prices.
As of 19:40 Beijing Time on February 18th:
– London spot gold price was reported at $4914.64 per ounce, up 0.78%.
– Spot silver price was reported at $75.807 per ounce, up 3.15%.
– The April gold futures price on the New York Mercantile Exchange was $4936.50 per ounce, up 0.62%.
– The March silver futures price was $75.820 per ounce, up 3.10%.
According to a report by Time Weekly, despite gold prices reaching historical highs, consumer enthusiasm for purchasing gold remains undiminished. During the Spring Festival holiday, at Beijing Caibai Hall, one customer purchased a 68-gram gold bracelet in one go; others were selecting zodiac pendants for their children; and some were placing orders for investment gold bars without inquiring about the price.
Meanwhile, on February 16th, the price display screen at Caibai Hall showed particularly striking figures: pure gold at 1528 yuan/gram, 999‰ pure gold at 1530 yuan/gram, and pure gold ornaments at 1540 yuan/gram.
A Caibai salesperson revealed to the reporter that sales of heavy-weight gold jewelry have been exceptionally strong recently. “Gold items over 10 grams are mainly purchased as gifts, especially around the Spring Festival when gift demand is concentrated.”
When asked which weight of gold bar sells better, the clerk said:
The reporter noted that on that day, the base price for Caibai investment gold bars was 1112 yuan/gram. Based on this, purchasing a 1000-gram investment gold bar would cost 1.112 million yuan.
Some analysts believe that against the backdrop of cooling expectations for Fed rate cuts, gold is encountering resistance at the $5000 mark. Combined with profit-taking by some investors, this has intensified downward price pressure.
James Steel, Chief Precious Metals Analyst at HSBC, stated:
The stance of Kevin Warsh, a potential future Fed Chair candidate, on reducing the Fed’s balance sheet represents a sustained negative influence on international gold prices.
Source: CCTV News, Time Weekly
