Today’s markets analysis on behalf of Tony Sage, CEO of Critical Metals ‘
Gold prices extended their rebound at the start of the week, stabilizing after a recent corrective phase. The persistence of geopolitical risk in the Middle East could underpin safe-haven demand, particularly after the metal’s correction during the first part of this month, fueling dip-buying. Downside risks to global growth from elevated oil prices are becoming more pronounced, which could revive defensive positioning and support bullion despite the rate environment.
At the same time, gold could remain vulnerable in the short term amid the risk of more central-bank selling, after Turkey’s central bank offloaded a significant amount, and a potential increase in Treasury yields and the dollar. ETF flows remained negative overall and could weigh on the market if the trend continues.
Looking ahead, gold’s trajectory will likely hinge on the developments in the Middle East, inflation expectations, and the evolution of monetary policy, in addition to the potential impact of elevated oil prices on the global economy. Upcoming US economic data could also affect sentiment and drive gold prices as they influence monetary policy expectations.
