Morning Bites (part 2)

🏆Global physical gold demand inched up 1% YoY to 1,160t in 1Q24, reversing from the revised -13% YoY in 4Q23, according to the World Gold Council (WGC) data. Specifically, central bank purchases in 1Q24 were 1% YoY higher, after the -43% YoY seen in 4Q23 due to the high base effect (in 2023, they were only -5% YoY). The demand for gold jewellery fell 2%, broadly in line with the -1% YoY in 3Q23 and 4Q23. Meanwhile, total global gold demand shrank 7% YoY in 1Q24 (vs. -11% YoY in 4Q23), amid persistent sales by ETFs. At the same time, world mined gold output grew 4% YoY in 1Q24, per the WGC

We reiterate our view that the price of gold, at spot, has already exceeded its fundamentally reasonable level (USD 2,200-2,300/oz for 2024), likely boosted by strong demand from global central banks and market expectations of an upcoming US Fed funds rate cut in 2024

#gold
https://metals-wire.com/sector/Gold