Gold: Extends gains but remains vulnerable – ING

ING’s Ewa Manthey and Warren Patterson report that Gold has extended gains for a third session, with spot prices moving above $4,700/oz as hopes grow that war in the Middle East could end within weeks. They stress that despite the rebound, March saw Gold’s worst monthly performance since 2008 and the metal remains exposed to liquidity and US Dollar risks.

Safe haven rebounds after steep March loss

"Gold extended gains for a third session on Wednesday on hopes that the war in the Middle East may be nearing an end. Spot prices climbed above $4,700/oz, while equities rallied and the US dollar fell, after President Trump said he expected the US to end the war within weeks."

"Still, despite the rebound this week, gold’s almost 12% decline in March was its worst monthly performance since October 2008."

"Gold remains vulnerable to a broader liquidity squeeze and a firmer US dollar, though so far pullbacks have been met with buying rather than a loss of confidence."

"Upcoming data on central bank purchases will be key to gauging whether the early‑year slowdown in official sector buying marks a more sustained pause or merely a temporary breather, with recent Turkish sales yet to be fully reflected."

"Also, earlier this week, Fed Chair Jerome Powell said long‑term US inflation expectations remain anchored and policy is “in a good place to wait and see”."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)