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Gold rebounds above $4,100 as safe-haven demand returns
Gold traded around $4,125 in early Asian hours, with its recovery tied to US-Iran tensions and dip-buying after the $4,000-an-ounce level held.
Gold prices rose into positive territory above $4,100, trading around $4,125 during early Asian hours on Thursday, as safe-haven demand returned amid continuing geopolitical uncertainty, FXStreet reports.
The metal extended its rebound after attacks between the United States and Iran widened into a second week. US President Donald Trump vowed the US would target Iranian infrastructure after Iran shoots at ships in the Strait of Hormuz, while Iran warned it would strike US-linked infrastructure and energy facilities across the region if Washington carries out the threat.
FXStreet cited TD Securities strategist Ryan McKay, who said the rebound appears flow-driven, sparked by dip-buying and relief that the $4,000-an-ounce floor held. McKay also cautioned that it is unlikely to mark a new structural uptrend, pointing to concerns that energy prices are starting to pick up again and may cap gold’s upside.
The article also noted Fed funds futures have shifted, with traders pricing a nearly 34% probability of a Fed rate hike this month, up from 10% a week earlier, and a 78% chance of at least a 25 basis point increase in September, according to the CME FedWatch tool. It added that central banks remain the biggest holders of gold, with reserves rising by 1,136 tonnes in 2022, worth about $70 billion, based on World Gold Council data.
Latest closeGold $4,117.00 ▲1.1%