The Chinese Central Bank Refrains from Buying Gold for the Second Consecutive Month
The Chinese central bank did not purchase any gold bullion in June,
marking the second consecutive month without additions,
causing the price of the precious metal to drop from its record high.
Content
China
According to official data released on Sunday, the amount of bullion held by the People’s Bank of China remained unchanged at 72.8 million ounces at the end of the last month.
The central bank had chosen not to add to its gold reserves in May,
ending an 18-month buying spree that had driven gold prices to their highest levels ever.
Economic Events
Key economic data and events expected this week.
In the United States, attention will be on the release of the Consumer Price Index and Producer Price Index data for June, followed by Federal Reserve Chairman Powell’s semi-annual testimony on monetary policy before the Senate Banking Committee.
Additionally, investors will closely watch the Michigan Consumer Confidence report.
In Europe, the spotlight will be on the second round of parliamentary elections on Sunday.
Elsewhere, interest rate decisions will be announced in New Zealand, South Korea, and Malaysia,
along with inflation data from Mexico, China, Brazil, India, and Russia.
In the United Kingdom, key data points include the GDP for May, the trade balance of goods,
industrial production, and the BRC retail sales monitor.
China will release its inflation rate, Producer Price Index, new yuan loans, and trade balance data.
Australia will publish the NAB business confidence and Westpac consumer confidence reports,
while India will release industrial production figures.
Germany’s trade balance will also be closely monitored.
Bitcoin
Bitcoin inflows surge due to buying the dip Bitcoin spot ETF inflows increased sharply
after the Fourth of July holiday, offsetting the declines seen earlier in the week.
This rebound coincides with Bitcoin’s price dropping below $54,000 on Independence Day.
A buying opportunity.
Bitcoin ETFs saw significant inflows despite the panic selling in the market,
indicating that strong hands and major players were taking advantage of the dips.
Although the Grayscale Bitcoin ETF (GBTC) recorded outflows of $28 million,
other funds compensated with strong inflows.
The Chinese Central Bank Refrains from Buying Gold for the Second Consecutive Month