Gold Hovers Near $5,000 an Ounce With US and China Closed

Group 1: Precious Metals Market Overview - Precious metals experienced a decline in trading, with gold falling 0.9% to around $5,000 an ounce, influenced by thin trading conditions due to the Lunar New Year holiday in Asia and US market closures [1][7] - The recent rise in gold prices by 2.4% was attributed to a modest increase in the US consumer price index, which alleviated concerns about inflation and supported the case for potential interest rate cuts by the Federal Reserve [1] - The market is currently in a rebalancing phase, with no clear catalysts to drive prices significantly higher, as attempts to push gold above $5,100 faced profit-taking pressures [1] Group 2: Retail Demand and Regulatory Environment - Retail demand for precious metals in China has surged, leading authorities in Shenzhen to issue warnings against illegal gold-trading activities, including leveraged trading apps and promotional live streams [3] - The silver market in China remains tight, with historic lows in inventories on the Shanghai Gold Exchange and unusual pricing dynamics in silver futures, indicating potential supply constraints [4] Group 3: Speculative Activity and Industrial Demand - There are signs that speculative intensity in the silver market is moderating, with adjustments to exchange rules aimed at limiting inventory outflows, which may alleviate domestic supply tightness [5] - The rising prices of silver have impacted its use in solar panels, a significant source of industrial demand growth, as manufacturers seek to reduce costs, making silver prices more sensitive to investor sentiment and market flows in the medium term [6]