Gold Market
Gold fell to a two-week low below $4,300/oz as higher oil prices revived US inflation concerns and reduced expectations of near-term Fed easing. ING strategists note profit-taking but see medium-term support from rate expectations, central bank buying and geopolitical uncertainty.
Gold has rallied 15% in August, supported by renewed ETF inflows, strong central bank buying, US rate expectations, Treasury buybacks and a weaker dollar.
Gold prices have surged sharply in August, supported by a weaker US dollar, expectations of monetary easing, geopolitical tensions, and sustained central-bank purchases. Strong Chinese demand and India’s upcoming festive and wedding season add further support.
Goldman Sachs now sees gold potentially exceeding its $4,900 year-end forecast, driven by rising call-option activity, Western investor interest and sustained central bank buying.
Gold declined on Thursday as investors locked in profits after the metal hit a two-month high. Analysts suggest the pullback is a consolidation within a broader uptrend, with key support at $4,400.
Gold dipped under $4,400 per ounce on Tuesday, reversing earlier gains as profit-taking and a broader metals correction outweighed support from diminished Fed tightening expectations.