"Gold recorded its second consecutive recovery session and is currently trading around USD 4,970 per ounce, indicating that dip-buying demand remains present after the sharp sell-off that previously pushed prices down toward USD 4,400 per ounce. The current price action suggests that market sentiment has gradually stabilized, as investors begin to reassess the recent decline as being relatively rapid and driven more by technical factors rather than a fundamental deterioration in underlying conditions."
"Beyond monetary factors, safe-haven demand remains a key pillar supporting gold prices. Global markets are still influenced by multiple unpredictable elements, including an uncertain economic growth outlook, policy-related risks, and geopolitical tensions that have yet to fully ease. These conditions encourage investors to maintain exposure to defensive assets, with gold retaining a central role. Meanwhile, the ongoing net purchasing trend by central banks since 2022 continues to provide an important structural floor for the precious metal."
Gold has staged a second consecutive recovery and trades around USD 4,970 per ounce after a prior sharp sell-off toward USD 4,400, supported by dip-buying. Market sentiment has stabilized as investors view the decline as rapid and technically driven rather than fundamentally deteriorating. Relative weakness in the U.S. dollar versus January levels has bolstered gold’s appeal, despite a recent technical rebound in the DXY. Gold continues to function as a risk-balancing and defensive asset amid uncertain global growth, policy risks, and geopolitical tensions, while central-bank net purchases since 2022 provide a structural floor. Elevated volatility and potential dollar strength or stronger U.S. data could still weigh on prices, especially near USD 5,000.
Read at London Business News | Londonlovesbusiness.com
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