Gold Market
China’s central bank bought 650,000 troy ounces of gold in August, its largest monthly addition since late 2023, extending a buying run into its 22nd consecutive month.
The Washington Agreement on Gold was a coordinated commitment by central banks to limit gold sales, aimed at stabilising the market and preserving the metal's monetary role.
Central banks hold gold reserves for diversification, as a safe store of value independent of any government, and to manage geopolitical and financial risk.
Real interest rates determine the opportunity cost of holding gold, making them a powerful driver of its price.
A surprise drop in US nonfarm payrolls and lower participation rates have highlighted fresh economic weakness, prompting analysts to re-evaluate the Federal Reserve policy outlook.
A surprising contraction in July US non-farm payrolls has weakened the dollar and lowered expectations of a September Federal Reserve rate hike.