Gold Market Stuck Between Rate Cuts and Central Bank Buying

The gold market has become stuck in a stalemate between conflicting forces.

On one side, resilient US economic data is pushing back against hopes for aggressive Federal Reserve rate cuts, which would make holding gold less attractive due to its lack of yield.

However, on the other side, central banks are buying a record amount of gold, and Chinese investors are flocking to bullion as their domestic equity market struggles.