Spot Gold Gains Slightly, Dollar & Yields Remain a Brake
The spot gold price (XAU/USD) edged up in recent trading, holding at $4,458/oz after experiencing wide intraday fluctuations. This strengthening occurred as market participants began dip-buying after pressure from the past few sessions, although the upward momentum was still restrained by the relatively solid US dollar and high bond yields.
In terms of sentiment, the market is still monitoring developments in the Middle East conflict, which is keeping the risk premium alive. However, for gold, macro factors remain dominant: as long as the market still perceives the risk of energy inflation causing interest rates to remain high for longer, gold is likely to struggle to rally aggressively, even though its safe-haven status remains relevant.
Overall, the market is in a tug-of-war: geopolitical headlines support gold, but the dollar and interest rate expectations still limit its upside. As long as yields remain consistent, gold has the potential to remain choppy, reacting quickly to every war headline and inflation/employment data.
Source : Newsmaker.id
