monsitj/iStock via Getty Images Gold futures edged higher on Friday and for the week, holding above $4,700/oz, and some analysts say downside risks for the metal are limited as demand from central banks led by China provides solid support . The People’s Bank of China continues to see lower gold prices as a buying opportunity, buying 8.1 metric tons of gold in April after purchasing five tons in M...
monsitj/iStock via Getty Images Gold futures edged higher on Friday and for the week, holding above $4,700/oz, and some analysts say downside risks for the metal are limited as demand from central banks led by China provides solid support . The People’s Bank of China continues to see lower gold prices as a buying opportunity, buying 8.1 metric tons of gold in April after purchasing five tons in March. "Despite the significant rise in prices, purchases by central banks and other public institutions in the first quarter totaled nearly 245 tons, according to the WGC, which was 3% higher than the previous year and even slightly above the five-year average," Commerzbank analyst Barbara Lambrecht said in a note. "Gold's resilience during a period of exceptional equity market strength points to continued central bank demand, as well as lingering investor unease over inflation, economic growth, and mounting fiscal debt concerns," Saxo Bank analysts wrote. "China's central bank remains a key structural support," ING analysts said in a note, with the PBOC reporting "its largest monthly gold purchase in over a year in April, extending its accumulation for an 18th consecutive month," However, ING said gold's upside remains constrained by a still restrictive macroeconomic environment, including elevated real yields, a strong U.S. dollar, and reduced expectations for near-term Federal Reserve easing. Gold futures ( XAUUSD:CUR ) gained for the fourth straight session as optimism over a potential end to the Middle East war helped ease concerns about inflation and high interest rates, with the front-month Comex contract for May delivery up 0.4% to $4,720.40/oz, while front-month Comex May silver rose 0.9% to $80.395/oz. For the full week, front-month gold and silver gained 1.9% and 5.8%, respectively. ETFs: ( GLD ), ( GDX ), ( GDXJ ), ( IAU ), ( NUGT ), ( PHYS ), ( GLDM ), ( AAAU ), ( SGOL ), ( DUST ), ( RING ), ( BAR ), ( OUNZ ), ( SLV ), ( PSLV ), ( SIVR ), ( SIL ), ( SILJ ) Mor...