"Gold pushed through the $4,000 mark after weeks of steady buying turned into a clean breakout. The catalysts were not a single headline but a stack of pressures coming together: a softer path for real rates, persistent geopolitical risk, steady central bank demand, and bursts of ETF participation. For London-based investors, the practical question now is whether the risk premium holds or we see a retest below the round number."
"The $4,000 print is the result of overlapping supports, not a single shock. Policy, inflation, geopolitics, and positioning all point to a higher floor, even if the pace cools after a vertical month. Based on Trading.com's analysis: Safe‑haven flows Periods of policy uncertainty and choppy equities have pushed asset allocators towards ballast. Gold benefited as the cleanest, most liquid hedge that is not tied to a single country's credit or politics."
Gold surpassed $4,000 as a confluence of factors reduced the opportunity cost of holding bullion and increased demand for hedges. Markets priced a softer path for policy, lowering real yields and amplifying gold's appeal. Liquidity thinned near the round number, and systematic and retail flows were drawn to the psychological magnet of $4,000. Persistent geopolitical tensions, defence spending, and fiscal uncertainty sustained safe-haven demand. Central banks continued steady, price-insensitive accumulation while ETF participation provided bursts of additional buying. The breakout raises the question of whether the new risk premium will hold or invite a retest below $4,000.
Read at London Business News | Londonlovesbusiness.com
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