Gold Drops 1.5% 🚩 Are Precious Metals Heading Lower Again? - XTB.com

AI desk brief

Gold is under pressure, down nearly 1.5% on the session, while silver is off close to 2.5% as higher oil prices, rising bond yields and expectations for a faster U.S. rate-hike path weigh on precious metals. The article flags the U.S. JOLTS and ISM Manufacturing releases at 3 PM GMT as the next near-term catalyst; weaker data could stabilize metals, while a strong print and firmer manufacturing prices index would likely extend selling.

The move lower followed weekend comments from Kevin Warsh that revived concerns about the Fed path. Technically, gold is described as defending its 200-day exponential moving average, with a close below $4,350/oz seen as a warning sign for a more prolonged downturn in the complex.

Despite the tactical weakness, the piece stresses that structural demand remains robust. World Gold Council data show central banks bought a net 289 tonnes in Q2, more than five times the 57 tonnes in Q1 and the highest second-quarter total on record. A WGC survey also found 45% of central banks expect to keep increasing gold reserves over the next 12 months, with buying broad-based across regions; China added 20 tonnes in July to a record 2,377.5 tonnes and Poland has added 82 tonnes this year to 632 tonnes.