Precious metals continued to perform well in a holiday-shortened week, TD Securities Senior Commodity Strategist Ryan McKay notes.

Asian XAU/USD demand remains strong

“While nonfarm payrolls printed above consensus expectations in June, the ongoing softish signals stemming from labor market conditions and consumer spending suggest the Federal Reserve (Fed) is likely to start considering its employment mandate more seriously in coming months.”

“In this sense, macro interest may be starting to pick up in gold as ETF positions continue to rise in July, after June saw the first monthly increase since May 2023.”

“Furthermore, while Chinese Gold (XAU/USD) reserves were flat for a second consecutive month amid their noted pause in buying, top traders on the Shanghai Futures Exchange (SHFE) have added back to their net positions, highlighting Asian demand is set to remain strong.”