Insights

Gold has fallen more than US$100/oz over the past month, with the bulk of the decline occurring over two days last week.

The yen (JPY) has weakened significantly during the first half of 2022: it has registered an 18% depreciation against the US dollar (USD) and now the JPY/USD stands at its lowest point since 1998.

On 30 June, India’s Ministry of Finance notified the industry that basic custom duty (BCD) on gold would increase from 1 July.

The latest update to our central bank holdings data set – capturing data to end-May – is now available. It shows that in May, central banks reported adding a net 35t to global gold reserves.

Retail demand remained strong y‑o‑y during the first three weeks of May due to robust Akshaya Tritiya sales, wedding demand and the lower base period of 2021. But demand softened during the last week of the month due to a higher gold price and fewer auspicious marriage dates.

Last week central banks stepped up their response to soaring inflation. Having been regarded as “behind the curve” in their attempts to control this issue thus far, they are now showing greater concern and resolve in bringing consumer prices down.

John Reade recently joined Fidelity International's MoneyTalk podcast for a conversation on gold.

Gold prices fell in May. Primarily driven by negative momentum impacts as well as lower risk and uncertainty, the SHAUPM in RMB and the LBMA Gold Price AM in USD fell by 1.8% and 3.2% respectively in the month.

Francisco Blanch, Head of Commodities and Derivatives Research at BofA Global Research, joins us for this episode of our Strategic Edge series.

So far in 2022, central banks’ monthly gold reported activity has been bobbing between net purchases and sales linked to a fairly small number of banks. As such, any significant purchase or sale from those can tip the balance in a given month.

Retail investors were enthusiastic buyers of cryptocurrencies last year. A global study by Hall Partners shows that cryptos were one of the most popular investments in 2021, with 31% of respondents investing in them over the first 10 months of the year.

Gold has come under pressure since mid-March, when it was within touching distance of its previous record high.

The international gold price declined in April, led by interest rate volatility and dollar strength. The LBMA Gold Price AM in USD fell by 0.4% and the MCX Gold Spot in rupees (INR) rose by 1% over the month.

The Shanghai Gold Price Benchmark PM (SHAUPM) in RMB rose in April while the LBMA Gold Price AM in USD saw a slight decline.

The resurgence of COVID-19 and the subsequent lockdowns in major Chinese cities since late February have made headlines. These lockdowns are leading to households spending less – especially for discretionary items – as well as saving more due to limited spending opportunities and cautious behaviour.

For a third consecutive year we partnered with Pensions Age to survey UK pension professionals about their views on gold and whether it features in their asset allocation.

Global central bank gold reserves fell by 4t in March (based on latest available data), flipping back to net sales following healthy net purchases of 32.3t in February

Gold prices extended their gain in March, led by higher inflationary pressures and rising geo-political risks. The LBMA Gold Price AM in USD and the MCX Gold Spot in rupees (INR) rose by 1.1% and 1.7% respectively over the month.

Gold prices extended their strength last month. The SHAUPM in RMB and the LBMA Gold Price AM in USD rose further in March, ending Q1 with a 5.2% and 5.7% gain respectively, the largest since Q2 2020.

Global central bank gold reserves fell by 6t in February. This is the second consecutive month of net sales, something not seen since 2020.