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Commodity Mid Session News

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(09 Apr 2025, 15:53)

Commodities Buzz: WGC says Gold's recent rise shows increase in geopolitical risk capturing tariff fears


World Gold Council or WGC stated yesterday that Gold saw another set of new highs in last month. Gold finished March at US$3,115 per ounce, a gain of around 10% m/m. Even a materially weaker US dollar, primarily via euro strength, couldn’t prevent a stellar performance and new highs across all other major currencies. According to WGC’s Gold Return Attribution Model (GRAM), euro strength and thus US dollar weakness was once again a key driver of gold’s performance, alongside an increase in geopolitical risk capturing tariff fears. Gold ETF buying continued apace in March with all regions contributing. US funds led the charge with US$6bn (67t) of net inflows followed by Europe then Asia with approximately US$1bn each. While ETF flows were positive, COMEX futures declined marginally by US$400mn (5t) likely on profit taking.
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