AXMIN Inc (TSXV: AXM)
AXMIN Inc. (TSXV:AXM) is a Canadian-based exploration and development company with a strong focus on central and West Africa.
Suki Cooper, precious metals analyst at Standard Chartered, noted on Thursday that Asian ETF inflows have been a key driver of gold’s recent rally. However, potential U.S. stimulus measures and easing geopolitical tensions could lead to a 10% decline in gold prices by year-end.
In an interview with Bloomberg Television, Cooper explained that multiple factors have fueled gold’s upward trajectory, partly tracing back to the surge in central bank purchases since 2022—a core driver that has sustained the rally and provided strong downside support. The major shift over the past three months, however, has been the return of ETF inflows, which were largely absent during most of gold’s 2024 rally but have now emerged as a fresh catalyst.
Cooper emphasized that this rally stands out due to its diverse drivers. While it took five years for gold to sustainably hold above 2,000, breaching 3,000 and maintaining the level took only weeks. Unlike traditional correlations with real yields, the current surge reflects broader concerns—recession risks, trade tariffs, potential trade wars, and geopolitical instability—all contributing to elevated prices.
When asked whether gold is overbought after a 40% surge over the past 12 months, Cooper pointed out that tactical positioning remains near February 2024 lows, well below 2019 peaks. Additionally, global ETF holdings are still about 400 tonnes short of their 2020 highs. She highlighted that new demand, particularly from China, has made this rally distinct.
Regarding central bank demand, Cooper noted that motivations vary—from target allocations to diversification and strategic reserves. Although purchases have moderated slightly amid record prices, underlying demand remains robust.
Standard Chartered forecasts a potential 10% pullback in gold prices over the next seven months, citing expected U.S. stimulus measures and reduced geopolitical uncertainty. The bank expects prices to stabilize above $3,000 but believes the peak may have passed.
Spot gold fell 0.5% to $3,297.33 an ounce by 10:30 a.m. ET, reversing its earlier rise to a two-week high of $3,345.33. US gold futures took a similar hit, down 0.6% at $3,294.70 an ounce.
