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IBM (IBM.N) is launching a digital asset platform designed to help financial institutions, governments, and businesses develop blockchain-based services to capitalize on the growing crypto market, according to a news release on October 27. The new product, called Digital Asset Haven, was developed jointly with crypto wallet technology provider Dfns. The two companies stated in a statement on Monday that they aim to capitalize on growing client demand for digital asset services by providing a one-stop solution.The Colombian peso opened 0.3% lower against the dollar after the United States imposed sanctions on oil companies.German Geoscience Research Center GFZ: A 6.5 magnitude earthquake occurred in the Leward Islands region of the Caribbean Sea.Delta Air Lines (DAL.N): Starting in October 2026, it will launch direct flights from its headquarters in Atlanta to Riyadh.1. Gold Price Rise: Gold prices have continued to strengthen since their 2022 low of $1,614, recently reaching a record high of $4,381, a cumulative increase of over $2,760. 2. Historical Reserves: The Bangko Sentral ng Pilipinas gold reserves peaked at 274.4 tons (Q1 2003), then declined sharply, reaching a low of 126.9 tons (Q3 2007), during which time gold prices continued to rise. The banks reserves rebounded after 2007, stabilizing from 2012 to early 2020. They have declined again since 2020, with the most recent reserves at 129.7 tons (Q2 2025). 3. Recent Reductions: On a quarterly basis, the Bangko Sentral ng Pilipinas (BSP) has been reducing its holdings from Q3 2023 to Q3 2024, with reserves falling from 164.8 tons to 128.1 tons. On an annual basis, the Bangko Sentral ng Pilipinas (BSP) has seen more gold reductions than increases over the past five years, with a reduction of over 28 tons in 2024 (concentrated in the first half of the year). 4. Gold Reserve Percentage: Despite recent gold reductions, the BSPs gold reserves have fluctuated around 10% of total reserves. Entering 2025, the proportion of gold reserves has risen above 12%, most recently reaching 12.9% (in the second quarter of 2025). 5. Last Years Statement: In September 2024, the BSP issued a statement on gold sales, stating that it had taken advantage of the rising gold price to generate additional income while maintaining the primary purpose of holding gold: insurance and security. 6. Latest Statement: BSP official Diokno stated that with waning safe-haven demand and gold prices expected to fall further from their historical highs, the BSP should sell some of its "excess" gold reserves. He noted that gold should ideally account for between 8% and 12% of central bank reserves.

Dollar Growth And Fed Hawkishness Are Pressuring Gold Prices

Aria Thomas

Feb 23, 2023 11:45

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Gold prices moved little on Thursday, but were down for the week as the dollar reached a six-week high on concerns of a hawkish Federal Reserve. Investors are now focusing on impending economic data for additional clues on the U.S. economy and monetary policy.


Later in the day, a revised estimate of U.S. GDP for the fourth quarter will be released, with any sustained evidence of resilience in the economy giving the Fed more room to continue raising interest rates. This notion was strengthened this week by readings on business activity that exceeded expectations.


Friday will also see the release of the Personal Consumption Expenditures price index for January, which is anticipated to confirm that inflation remained persistent throughout the month. In addition, the reading is likely to increase the Fed's calls for sharper interest rate increases in the future months.


At 19:07 E.T., spot gold was unchanged at $1,824.76 per ounce, while gold futures declined 0.1% to $1,832.85 per ounce (00:07 GMT). Both assets were down approximately 0.4% thus far this week.


Wednesday's publication of the minutes from the Federal Reserve's February meeting revealed that the majority of monetary policy committee members supported raising interest rates for an extended period of time this year. However, their proposals for a 25 basis point increase were deemed obsolete after data released after the Fed's meeting revealed that inflation remained much more persistent than anticipated.


Nonetheless, the dollar reached a six-week high versus a basket of currencies. The opportunity cost of holding non-yielding assets such as gold and other precious metals increases as interest rates rise.


This week will also bring inflation data from the Eurozone and Japan, which are expected to indicate that global price pressures remain elevated, likely resulting in tightening monetary conditions.


On Thursday, other precious metals were trading lower. Futures for silver fell 0.6% to $21.530 per ounce, while futures for platinum fell 0.1% to $950.80 per ounce.


High-grade copper futures were muted at $4.1790 per pound on Thursday, after falling 1.1% on Wednesday.


In spite of this, prices of the crimson metal have increased by nearly 2% so far this week, due to evidence of resilience in U.S. economic activity and optimism regarding China's recovery.