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Bessent may tap the TGA to buy bonds; how will Warsh set the market tone at the annual meeting?
惠理投資
joined discussion · Jul 15 16:23

US CPI data triggers a sharp spike in gold prices—Are central banks buying gold again... again... again... again❓‼️

The U.S. released June CPI data yesterday, showing annual inflation easing to 3.5%, below the expected 3.8%; core CPI was flat month-over-month, indicating a cooling of inflationary pressures. Following the data release, market expectations for further Fed monetary tightening declined, weakening the dollar and driving a rebound in precious metals prices.$XAU/USD (XAUUSD.CFD)$ Spot gold surged immediately after the data release, breaking above its prior high with a gain of over 2%, reaching as high as around $4,091 per ounce;$XAG/USD (XAGUSD.FX)$ Other precious metals such as silver and platinum also strengthened in tandem.
The US released June CPI data yesterday, showing annual inflation cooled to 3.5%, below the expected 3.8%; core CPI remained flat month-over-month, indicating easing inflationary pressure. Following the release, market expectations for further Fed monetary tightening declined, weakening the dollar and driving a rebound in precious metals prices.$XAU/USD (XAUUSD.CFD)$ Spot gold surged rapidly after the data release, breaking above its previous high with a gain of over 2%, reaching as high as around $4,091;$XAG/USD (XAGUSD.FX)$ Other precious metals such as silver and platinum also strengthened in tandem. But looking back at the data,Global central banks have recorded net gold purchases for the 20th consecutive month—a strong signal reaffirming the long-term appeal of precious metals as a core reserve asset.According to the latest data, central banks were again net buyers of gold in June 2026, with the People's Bank of China adding 480,000 troy ounces in a single month—marking its 20th consecutive month of accumulation. Full-year central bank gold demand is still projected to remain elevated at 750–1,000 tonnes. Why are central banks 'frenziedly' buying gold? 1. Reserve diversification and risk hedging:Against the backdrop of geopolitical uncertainty and U.S. dollar volatility, gold—free of credit risk and highly liquid—serves as the 'ultimate safe-haven asset,' helping central banks reduce reliance on a single currency. 2• Inflation Hedge and Long-Term Value Preservation:Even as short-term oil price increases fuel inflation expectations, central banks remain firmly committed to holding gold, reflecting its stable value across market cycles. 3. Accelerated Accumulation by Emerging Markets:China, Poland...
However, looking back at the data,the strong signal of global central banks net-buying gold for the 20th consecutive month continues to affirm the long-term appeal of precious metals as core reserve assets.According to the latest data, central banks were net buyers of gold again in June 2026, with the People's Bank of China adding 480,000 troy ounces in a single month—marking its 20th consecutive month of purchases. Annual central bank gold buying expectations remain elevated at 750–1,000 tonnes.
The US released June CPI data yesterday, showing annual inflation cooled to 3.5%, below the expected 3.8%; core CPI remained flat month-over-month, indicating easing inflationary pressure. Following the release, market expectations for further Fed monetary tightening declined, weakening the dollar and driving a rebound in precious metals prices.$XAU/USD (XAUUSD.CFD)$ Spot gold surged rapidly after the data release, breaking above its previous high with a gain of over 2%, reaching as high as around $4,091;$XAG/USD (XAGUSD.FX)$ Other precious metals such as silver and platinum also strengthened in tandem. But looking back at the data,Global central banks have recorded net gold purchases for the 20th consecutive month—a strong signal reaffirming the long-term appeal of precious metals as a core reserve asset.According to the latest data, central banks were again net buyers of gold in June 2026, with the People's Bank of China adding 480,000 troy ounces in a single month—marking its 20th consecutive month of accumulation. Full-year central bank gold demand is still projected to remain elevated at 750–1,000 tonnes. Why are central banks 'frenziedly' buying gold? 1. Reserve diversification and risk hedging:Against the backdrop of geopolitical uncertainty and U.S. dollar volatility, gold—free of credit risk and highly liquid—serves as the 'ultimate safe-haven asset,' helping central banks reduce reliance on a single currency. 2• Inflation Hedge and Long-Term Value Preservation:Even as short-term oil price increases fuel inflation expectations, central banks remain firmly committed to holding gold, reflecting its stable value across market cycles. 3. Accelerated Accumulation by Emerging Markets:China, Poland...
Why are central banks 'aggressively' buying gold?
1. Diversifying reserves and hedging risk:Against the backdrop of geopolitical uncertainty and U.S. dollar volatility, gold—being a highly liquid 'ultimate safe-haven asset' with no credit risk—helps central banks reduce reliance on any single currency.
2Inflation protection and long-term value preservation:Even as short-term oil price increases push up inflation expectations, central banks remain committed to holding gold, reflecting its stable value across market cycles.
3. Acceleration by emerging markets:Countries such as China, Poland, and India continue to increase their holdings, creating structural demand support already evident in 2026.

How can retail investors follow central banks’ lead?
Amid persistent global macroeconomic uncertainty, gold remains a valuable diversification tool within investment portfolios and merits medium- to long-term attention. Investors seeking a more convenient way to gain exposure to gold may consider gold ETFs as one vehicle to participate in gold price performance.$Value Gold ETF (03081.HK)$
What’s your view on gold prices going forward? Share your thoughts below.

Data sources: Market trends and CPI data from Bloomberg as of July 14, 2026. Gold reserve data from the People's Bank of China as of June 30, 2026. Investments involve risks; past performance and any forecasts may not be indicative of future results. Fund unit prices may go up or down. Investors should refer to the relevant fund prospectus for details and risk factors. The information provided herein is for reference only, and the views and opinions expressed are subject to change without notice. This document does not constitute an offer to sell, a solicitation to buy any securities, or a recommendation regarding any securities. This content has not been reviewed by the Securities and Futures Commission of Hong Kong. Issued by Value Partners Asset Management Hong Kong Limited and Saxo Asset Management Hong Kong Limited.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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