Schroders: Central Bank Demand and Asian Buying to Provide Long-Term Floor for Gold
Key Facts
Amid shifting geopolitical landscapes, gold is emerging as a strategic asset backed by long-term monetary policies. According to reports from Schroders analysts, global central bank demand for the precious metal is expected to rise and support prices for many years to come. This structural demand is viewed as a primary floor for the market despite short-term volatility.
June marked a return of the East/West dynamic in the gold market, as Asian investors maintained strong buying momentum. This persistent interest from the East occurred even as Western counterparts exited their positions, with Asian demand effectively offsetting Western liquidations.
Looking ahead, traders are monitoring how macroeconomic data influences safe-haven appeal, particularly following recent industrial production and GDP figures from China which showed mixed performance.