Central Banks Continue Gold Purchases as Supply Constraints Support Precious Metals as of End-June

According to FxEmpire analyst Arslan Ali, precious metals are receiving structural support from two main forces as of end-June: continued central bank purchases and tight mining supply. Central banks are diversifying reserves and increasing gold holdings to hedge against elevated global debt levels and shifting monetary policy environments. Simultaneously, new gold and silver mine production remains constrained; gold output has not grown significantly from prior peaks due to aging mines and rising extraction costs. On the demand side, silver benefits from strong industrial usage in solar, electronics, and electric vehicle manufacturing, while both precious metals attract steady investment demand from ETFs and physical holders.
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