$83 billion Gold Deposit Found

Brandon S., Editor
NOV 23, 2024

With central banks aggressively stockpiling gold reserves at the fastest pace in decades, the precious metals market is drawing increased global attention.

Now, a massive discovery of 330 tons of gold in China's Hunan province could further disrupt supply dynamics...

China Strikes Gold: 300-Ton Deposit Found

China Mining

China has discovered a significant gold deposit valued at $83 billion in its central Hunan province. According to state media Xinhua, geologists identified over 40 gold veins containing 330 tons of gold within the Wangu gold field, reaching depths of 6,500 feet.

The discovery could substantially increase China's gold production, which currently represents 10% of global output. The Hunan Academy of Geology suggests even greater potential, estimating reserves could exceed 1,100 tons at depths beyond 10,000 feet.

Economy's Strength Prompts Fed to Rethink Rate Cut Plans

Strong economic indicators and anticipated policy shifts have led some Federal Reserve officials to recalibrate its interest rate strategy. Officials now signal fewer potential rate cuts in 2025, citing robust economic performance and resilience.

This adjusted stance could impact borrowing costs across mortgages, auto loans, and business financing, as the Fed prioritizes economic stability over aggressive rate reductions.

UK Economic Struggles Send Pound to Six-Month Low

The British pound has fallen to its lowest dollar value since May, driven by deteriorating economic conditions. Business activity contracted in November — the first decline in over a year — while October retail sales disappointed expectations.

This economic weakness may force the Bank of England to consider more aggressive monetary easing than initially planned, marking a stark contrast with the U.S. economic outlook.

Goldman Sachs Sees Gold Reaching $3,000 in 2025

In a new forecast, Goldman Sachs strategist Samantha Dart projects gold prices to surge to $3,000 per ounce by late 2025. Dart’s analysis cites unprecedented central bank purchasing as the key catalyst, with institutional buying reshaping the precious metals landscape.

This forecast aligns with recent trends. Since 2022, central banks around the world drastically increased their gold reserves, with the highest level of net purchases in decades.

Central Bank Purchases