Precious metals sustained their positive performance during a holiday-shortened week, according to TD Securities Senior Commodity Strategist Ryan McKay.
Steady Demand for Gold in Asia
Despite June’s nonfarm payrolls exceeding consensus expectations, persistent soft signals from labor market conditions and consumer spending suggest the Federal Reserve might soon prioritize its employment mandate more seriously. This shift could benefit Gold as macroeconomic interest appears to be growing, with ETF positions rising in July following the first monthly increase since May 2023.
In China, while Gold reserves remained unchanged for the second consecutive month, significant activity among top traders on the Shanghai Futures Exchange (SHFE) indicates robust demand in Asia. These traders have been increasing their net positions, underscoring the strong and sustained interest in Gold across the region.
