{"id":16195,"date":"2025-01-02T02:55:48","date_gmt":"2025-01-02T02:55:48","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=16195"},"modified":"2025-01-02T02:55:48","modified_gmt":"2025-01-02T02:55:48","slug":"gold-inches-higher-with-central-bank-buying","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-latam\/analysis\/gold-inches-higher-with-central-bank-buying\/","title":{"rendered":"Gold Inches Higher with Central Bank Buying"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-medium-font-size\">Key Points<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Gold closed at $2,632.62\/oz<\/strong>, rising 1.05% after intraday support at $2,621.78.<\/li>\n\n\n\n<li>Strong central bank buying and geopolitical risks are driving demand for the metal.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Gold Builds on Early 2025 Momentum<\/h2>\n\n\n\n<p>Gold prices rose in early Asian trading on Friday, continuing its upward trajectory. Demand has been bolstered by <strong>persistent central bank purchases<\/strong> and heightened <a href=\"https:\/\/t.co\/HIlQzMpn4V\">global conflicts<\/a>, specifically ongoing tensions within the Middle East and Eastern Europe.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Gold opened steady in the new year after notching its biggest annual gain since 2010 <a href=\"https:\/\/t.co\/LSy8tzkI5e\">https:\/\/t.co\/LSy8tzkI5e<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1874613987070885923?ref_src=twsrc%5Etfw\">January 2, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-latam\/wp-content\/uploads\/sites\/23\/2026\/03\/image-1024x449.jpg\" alt=\"\" class=\"wp-image-16196\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Gold maintains bullish momentum as safe-haven demand and technical strength drive prices higher, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>The session saw gold prices rebound sharply from an intraday low of <strong>$2,621.78<\/strong>, climbing to a high of <strong>$2,632.64<\/strong>. Strong buying interest at lower levels underpinned the rally with market participants holding onto the metal as a hedge against shaky global conditions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Central Bank Activity Bolsters Demand<\/h2>\n\n\n\n<p>Central banks worldwide have ramped up their gold acquisitions, recognising its value as a stable reserve asset. Gold&#8217;s continued upward trend throughout 2024 is expected to continue into the new year as <strong><a href=\"https:\/\/t.co\/P5B1WzJfCy\">inflation <\/a><\/strong>talk shapes the macroeconomic landscape.<\/p>\n\n\n\n<p>The <strong><a href=\"https:\/\/t.co\/dfeEIDxU0R\">ECB<\/a><\/strong>, for example, anticipates hitting its expected 2% inflation rate for 2025, which will contribute to the global efforts to combat inflation.<\/p>\n\n\n\n<p>The sustained buying from central banks may also be an effort to offset potential headwinds from the <strong><a href=\"https:\/\/t.co\/7OkXQ5EYBu\">Federal Reserve\u2019s<\/a><\/strong> cautious pace of interest rate easing.<\/p>\n\n\n\n<p>While easing typically supports gold prices, the Fed&#8217;s restrained approach could cap gains by maintaining attractive real yields.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Fed Humps and Trump Bumps<\/h2>\n\n\n\n<p>While gold enjoys strong support, challenges linger. The <strong>Federal Reserve\u2019s measured easing stance<\/strong> may temper inflationary pressures, reducing some of the impetus for gold demand.<\/p>\n\n\n\n<p>The Trump administration\u2019s trade and fiscal policies could also introduce new variables.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The Fed has pulled back on the number of projections for interest rate cuts next year to two from four in the face of what is expected to be more stubborn inflation.<br><br>.<a href=\"https:\/\/twitter.com\/Jenniferisms?ref_src=twsrc%5Etfw\">@jenniferisms<\/a> explains: <a href=\"https:\/\/t.co\/KRgeWbAFmr\">pic.twitter.com\/KRgeWbAFmr<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1874119478310531503?ref_src=twsrc%5Etfw\">December 31, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Any aggressive stance on tariffs or spending cuts could shift risk sentiment and affect capital flows, indirectly impacting gold prices.<\/p>\n\n\n\n<p><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/eurusd-dips-on-boj-and-weak-chinese-data\/\">EURUSD Dips on BOJ and Weak Chinese Data<\/a><\/strong><\/p>\n\n\n\n<p>Active market participants may look to capitalise on short-term dips near the support level while monitoring critical economic and political developments that could influence price movements in the months ahead.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold climbs, supported by central bank purchases and safe-haven demand amid global uncertainties. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[44],"tags":[10],"class_list":["post-16195","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-gold"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/16195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/comments?post=16195"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/posts\/16195\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/media?parent=16195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/categories?post=16195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-latam\/wp-json\/wp\/v2\/tags?post=16195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}