Gold's short-term volatility contrasts with long-term bullishness
GLD•Gold ended at $4,065.63 an ounce on November 6 after recovering from a low of $3,869.85 on October 30. Central banks bought 321.2 metric tons in the third quarter, while gold ETF inflows reached 19 tons in October.
1. Short-term uncertainty
Gold has recovered above $4,000 an ounce after dipping below that level in October, but remains vulnerable to swings tied to equities, oil prices and changing expectations for U.S. monetary policy. The article says equity weakness could prompt investors to sell gold in the short term, even as a prolonged downturn affecting the real economy could support it over the medium term.
2. Long-term demand
Central banks bought 321.2 metric tons of gold in the third quarter, up from 296.3 tons in the second quarter and the most since the final quarter of 2024, World Gold Council figures showed. Gold ETFs drew 19 tons of inflows in October, following 211.2 tons in the third quarter.
3. Jewellery buying
India's jewellery demand reached 99.9 tons in the third quarter, its highest since the fourth quarter of last year, while China's rose to 71.9 tons from 55.7 tons in the second quarter. The article says lower prices are likely to boost jewellery demand in both countries.
