Gold Stable, But 'Major Risk' Not Over Yet?
Spot gold prices moved steadily at the start of the week, supported by bargain hunting after sharp pressure in recent weeks, although the market still believes the Iran conflict, which is entering its fifth week, will maintain high volatility. XAU/USD hovered around $4,437 per ounce in the Asian session, slightly correcting from previous gains.
Buying interest on dips is emerging after a significant decline since the war began. However, concerns remain that a prolonged conflict could raise inflation through energy channels, maintaining expectations of tighter interest rates and creating a drag on non-yielding gold.
On the flow side, the market is also monitoring the risk of central bank gold reserve sales. Reuters reported that the Turkish central bank's gold reserves fell sharply, along with gold sales and swaps following the Iran war, adding short-term pressure on bullion.
Going forward, gold's direction will be largely determined by three variables: the escalation or lull in the conflict (and its impact on oil), dollar movements, and changes in US interest rate expectations, which affect the opportunity cost of holding gold. (asd)
Source: Newsmaker.id
