"Gold retreated on Tuesday after multiple consecutive sessions of gains, with prices easing following the surge that brought bullion close to record highs. The pullback appears largely driven by profit-taking, rather than a deterioration in the broader backdrop, which remains supportive for the metal. Expectations of a more accommodative global policy stance continue to underpin gold. A softer dollar has reinforced this narrative, enhancing gold's appeal."
"Attention is also turning to other major central banks later this week. The Bank of England is anticipated to cut interest rates, a move that could further support non-yielding assets. In contrast, the Bank of Japan is expected to raise rates, a development that could limit gold's gains to a certain extent. ETF flows remain constructive. Gold-backed ETFs recorded inflows of 21.5 tonnes last week, the strongest since mid-October, signalling renewed investor interest."
Gold eased after several consecutive sessions of gains, retreating from levels near record highs due primarily to profit-taking. Monetary conditions remain supportive for the metal, driven by expectations of more accommodative global policy and a softer dollar that enhances gold's appeal. Market attention is focused on upcoming central bank moves, with the Bank of England expected to cut rates and the Bank of Japan expected to raise them, creating mixed implications for bullion. Gold-backed ETFs recorded the strongest inflows since mid-October, while ongoing central bank purchases sustain medium-term demand. Elevated geopolitical tensions continue to support gold's hedge role.
Read at London Business News | Londonlovesbusiness.com
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