DBS Group Research anticipates China's credit demand to remain weak in July, with new Yuan loans around RMB 10.8 billion and M2 growth at 8% year-on-year. This cautiousness in both corporate and household lending may have implications for the global gold market.

Cautious Lending and Its Impact on Gold

When credit demand declines, it can signal slowing economic activity, prompting investors to seek safer assets like gold. Gold is often viewed as a safe haven during times of economic uncertainty, which can increase demand for this precious metal.

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