Gold and silver prices surge after sharp selloff, India set to ramp up silver imports into 2027 - Heraeus
(Kitco News) – Gold is seeing renewed buying interest after prices fell below $4,000 per ounce last week, but the prospect of further Fed hikes still looms over the yellow metal, while India’s easing import regime is set to boost silver consumption for the next six months, according to precious metals analysts at Heraeus.In their latest update, the analysts noted that while the Federal Reserve left interest rates unchanged last week, future hikes are very much on the table.“The gold price fell initially during Kevin Warsh’s press conference before recovering, as the dollar and shorter-dated Treasury yields eased,” they wrote. “However, Thursday’s economic data reinforced the case for another hike: the Personal Consumption Expenditures (PCE) price index accelerated to 3.6% year-on-year in September from 3.4% the month before, with core inflation rising to 3.1%, while the US economy expanded at a strong 3.4% annualised rate in Q3. Following these data prints, gold has fallen below $4,000/oz. Markets are currently pricing in around a 76% probability of a 25 bp increase in December (source: CME Group), leaving monetary policy a substantial headwind for gold.”Heraeus believes the slide back below $4,000 per ounce could serve to draw buyers back into the market. “When gold last tested this area in June and July, the dip coincided with a pick-up in Chinese demand,” they said. “Non-monetary gold imports rose to 173 tonnes in June, the highest since March 2024, while the People’s Bank of China (PBoC) stepped up its purchases to 15 tonnes in June and 20 tonnes in July, its largest additions since late 2023 (source: World Gold Council). This helped to put a floor under prices ahead of the August rally.”“It is too early to say whether a similar response is under way: the Shanghai premium remains modest, and the PBoC’s October reserve data, due in early November, will indicate whether official buying has accelerated,” they cautioned. “Even so, renewed Chinese demand could help s
