Commodities
Gold Hits Two-Month High Amid Rising Inflation Risks
Gold prices have continued their upward trend, reaching a two-month high of around $4,400 an ounce on Tuesday. This rally is largely driven by increased investment demand for precious metals, despite rising inflationary risks and expectations of interest rate hikes.
Chinese institutional investors remain bullish on gold, with bullion holdings continuing to rise as a hedge against market volatility. This trend is reflected in the performance of gold-backed exchange traded funds (ETFs) in China, which have recorded their longest streak of inflows in months.
The People's Bank of China has also increased its gold reserves, purchasing around 20 tons in July and 15 tons in June. These monthly additions are the largest since October 2023.