Gold's short-term volatility contrasts with long-term bullishness, Russell says
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-bank purchases, investment inflows and jewellery demand support the longer-term outlook, while near-term trading may remain sensitive to equities, oil prices and interest-rate expectations.
1. Short-term pressures
Gold has repeatedly recovered after dipping below $4,000 an ounce, but remains vulnerable to swings as equity markets, crude oil and monetary-policy expectations shift. The article says weakness in equities could prompt investors to sell gold, while a downturn extending into the real economy could support it over the medium term.
2. Central-bank buying
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 fourth quarter of 2024, World Gold Council figures showed. Demand was just 57.7 tons in the first quarter, when gold reached a record high, and the recent dip below $4,000 an ounce is likely to encourage buying in the current quarter.
3. Investment and jewellery demand
Gold-backed exchange-traded funds recorded inflows of 19 tons in October, following 211.2 tons in the third quarter, which reversed outflows of 47.3 tons in the second quarter. 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.
