The reverse side to the growth in demand for risks in China was the pressure on gold. From the beginning of the week, precious metal prices lost 2.6% turned out to be near March lows at $1,290. It is noteworthy that during the last two months, the periods of the steady growth of gold are replaced by sharp sales impulses, which causes wariness. The slowdown in global inflation is becoming a factor against the purchase of this precious metal as opposed to fixed-income bonds.
Seasonality also plays against gold at the moment. From March to August, this precious metal rarely experiences rally, amid a decline in demand for physical metal. Only by the fourth quarter, purchases by jewellers intensify against the background of preparations for holidays in India and China, which are the main consumers of jewellery gold.
Alexander Kuptsikevich, the FxPro analyst
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