Gold Drops 1.5% 🚩 Are Precious Metals Heading Lower Again? - xtb.com

AI desk brief

Gold is under near-term pressure, down nearly 1.5% with silver off about 2.5%, as higher oil prices, firmer bond yields and expectations for a more restrictive Fed lift real-rate headwinds. The piece flags a key technical area as gold defends its 200-day EMA, with a close below $4,350/oz presented as a signal for more prolonged weakness.

The article points to upcoming volatility from U.S. JOLTS and ISM Manufacturing data at 3pm GMT, with weaker prints likely supportive for metals and stronger readings — especially a hot prices index — potentially encouraging further selling. It also cites weekend comments from Kevin Warsh as a catalyst that revived concern about the interest-rate path.

Offsetting the bearish tactical tone, the report highlights very strong structural demand from central banks. Latest World Gold Council data show net central bank buying of 289t in Q2, versus 57t in Q1 and the highest second-quarter figure on record; 45% of central banks surveyed plan to keep increasing gold reserves over the next 12 months. China added 20t in July to 2,377.5t, taking 2026 YTD additions to 60t, while Poland has added 82t this year to 632t, underscoring broad-based official-sector support on dips.