By Krisada Yoonaisil, Financial Markets Strategist at Exness
Gold extended its decline, dropping to around USD 4,400 before rebounding to some extent. Traders could remain cautious amid the nomination of Kevin Warsh to lead the Federal Reserve, which prompted a repricing of non-yielding assets.
However, the geopolitical backdrop remained supportive. In the Middle East, while tentative signs of diplomatic engagement emerged, risks remain elevated. Tensions in Eastern Europe remain high, which could help stabilize the market and fuel safe-haven assets demand.
The bullish outlook could remain intact despite last week’s selloff. The market could continue to see resilient demand from both central banks and private investors despite heightened volatility. Official-sector buying exceeded expectations, with roughly 230 tonnes purchased in Q4 and about 863 tonnes accumulated in 2025. Investment demand has also broadened, spanning ETF inflows, strong bar and coin purchases.
Looking ahead, markets will closely track monetary policy signals. Any indication that Fed independence could be compromised may ultimately re-ignite upside potential for gold after this corrective phase.