BAF NEWS

Gold Edges Up After Recent Declines

Spot prices nudged higher in early Asian trade, with traders calling it a technical recovery after weakness. One desk put it plainly, “Gold rises in the early Asian session on a likely technical recovery.” WSJ and Bloomberg placed bullion near $4,100/oz during the bounce.

• Spot hovered around $4,100/oz during the Asia lift, per WSJ and Bloomberg.
• In subsequent trade, prices were near $4,059–$4,072/oz, Reuters reported.
• The rebound followed two straight down sessions, according to Bloomberg.

Zoom in: The push looked tactical rather than thematic. Analysts framed it as positioning relief after a brisk pullback.

Context: Recent Gold Price Trends

The rebound followed back-to-back declines and a brief dip to a one‑week low. Reuters noted gold rose about 0.4% to roughly $4,072/oz from that low. Bloomberg also flagged that prices had fallen for two sessions before the bounce.

Nevertheless, sellers did not disappear. Reuters added that gold was trying to break a three‑day losing streak earlier this week. Momentum stayed fragile as traders reassessed policy odds.

Key Drivers: Dollar Strength and Fed Policy

A firmer dollar remains the key headwind. As Reuters put it, “Gold has somewhat had its momentum thwarted by the stronger USD.” That dynamic has limited upside during the mid‑week churn.

Meanwhile, policy uncertainty looms. Investors are watching minutes from the latest Federal Reserve meeting and the delayed U.S. jobs data, Reuters reported. Therefore, near‑term direction likely hinges on whether those releases shift rate‑cut expectations.

Still, haven interest can cushion dips. Risk aversion tends to limit downside when macro uncertainty rises, according to Reuters. That tension has kept ranges tight despite cross‑currents.

Broader Market Turbulence Impacts Gold

The move unfolded as markets whipsawed elsewhere. The Wall Street Journal described a broad selloff that swept through tech, crypto, and gold.

Global equities turned sharply negative this week, Reuters reported. Consequently, de‑risking flows may have amplified intraday swings in bullion.

However, risk‑off episodes can cut both ways for gold. Forced selling can pressure prices, yet haven demand can re‑emerge when stress rises. Thus, day‑to‑day performance depends on which impulse dominates.

Central Bank Demand Remains Supportive

Structural demand from central banks continues to underpin the market. Goldman Sachs said official buyers likely kept purchasing gold in November, according to Reuters. That view helps explain resilience during pullbacks.

• Estimated official purchases were 64 tonnes in September versus 21 tonnes in August, Reuters reported from Goldman’s analysis.
• Goldman reiterated a $4,900/oz end‑2026 target, Reuters said.
• At the time of that note, spot was near $4,068/oz, with gold up roughly 55% year to date, Reuters reported.

The upshot: Strategic buying by central banks offers a floor, but it does not erase near‑term macro risks. A strong dollar and shifting rate expectations still control intraday direction.

What’s next: Watch the Fed minutes and the delayed U.S. payrolls print. If the dollar eases and rate‑cut odds firm, upside could reopen. If not, the path likely stays choppy within recent ranges.