| “Gold advanced on Monday, extending a rebound as investors bought the dip after the metal touched multi-month lows last week. Geopolitical risks remain elevated, supporting safe-haven demand, but the market continues to weigh this against a more restrictive U.S. rate outlook.
At the same time, elevated oil prices are reinforcing inflation concerns and keeping U.S. yields and the dollar supported as expectations for rate cuts fade. This higher-rate backdrop typically weighs on non-yielding assets such as gold, limiting the scope for a sustained upside move despite the near-term bounce. Central bank-related flows have also come into focus recently after Turkey’s central bank reported a sharp decline in gold reserves as it moved to support the lira amid heightened volatility. Any broader signs of reserve selling could add pressure, while continued accumulation elsewhere would remain a supportive medium-term factor.”
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