George Milling-Stanley, Gold Chief Stratege at State Street Global Advisors, said the 40% Gold race in the past 12 months is still legs. Here is why.
Gold prices will probably not lose their sparkle, even after a 40% race in the last 12 months.
The SPDR Gold, or GLD shares, the largest fund negotiated on the stock market supported by physical gold, saw the largest influx of a day of $ 1.9 billion on February 21, 2024.
“”We believe that demand is at all levels. We see institutions add or establish positions of the long -term strategic asset allocation. We see individual investors doing the same. We see a certain amount of Fomo. There is a fear of missing whenever the price is gaining momentum “” George Milling-Stanley, chief Gold Stage at State Street Global Advisors, told Fox Business.
It highlights three longer -term growth engines that align for more gold gains this year.
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“We have continued to buy very strong purchase of central banks for official reserves. This has been a characteristic of the last 15 years on the gold market, and it has been very important, ranging from 10% to 25% of the total demand for end users during a given year. And I think that it is a very important support for the price whenever it is shown in any sign of weakening,” said Milling-Stanley. “Central bank purchases have essentially doubled in 2022 to more than 1,000 metric tonnes,” he added.
Spot Gold maintained the gains on Monday while traders questioned the expectation of the increase in interest rates against the call of metal as a good value. (Istock / Istock)
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“In addition, we have noticed a strong increase in investment in emerging markets and especially China, but in India and elsewhere during the last year, the year and a half, towards the end of last year, which was joined by a strong increase in demand for market jewelry also, again, in emerging markets,” he added. “We have seen a revival in investment in gold in the Western world, in Western Europe and North America, I think mainly because of the concerns concerning the prospects of the American economy and European economies, moreover.”
Gold price (Commercial economy)
Gold has withdrawn its $ 2,947 record per ounce; Still Milling-Stanley plans that yellow metal could be negotiated between $ 2,900 and $ 3,100 later this year.
Inflation remains a joker. The consumer price index in January increased by 3%more than expected. Prices remain high for articles such as eggs, beef and transport.
Buyer buyer, lender on wages and buy and sell a theme of precious metal concept with a heap of silver in American dollars, gold rings, collar bracelet and gold bars insulated on white white background
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Friday, the favorite inflation measure of the federal reserve increased in January, on an annual basis, 2.5%, with the basic PCE of 2.5%. Both were in line with analysts’ expectations.
