Gold: Strong central bank buying remains a supportive factor – ANZ

Hawkish comments from the Fed and a stronger USD weighed on Gold. Economists at ANZ Bank analyze the yellow metal’s outlook.

War-risk premium has faded

Gold edged lower as a stronger USD and a hawkish Fed weighed on investor demand for the precious metal. The war-risk premium has also faded as the Israel-Hamas war shows little signs of escalating. 

However, strong central bank buying remains a supportive factor. China topped up its Gold holdings for a 12th straight month in October, with its reserves rising by about 740,000 ounces (~23t), according to official data. That takes total holdings to 2,215t.