"Gold pushed through the $4,000 mark after weeks of steady buying turned into a clean breakout. The catalysts were not a single headline but a stack of pressures coming together: a softer path for real rates, persistent geopolitical risk, steady central bank demand, and bursts of ETF participation. For London-based investors, the practical question now is whether the risk premium holds or we see a retest below the round number."
"Policy and real-yield repricing. Markets leaned harder into rate-cut expectations, lowering the opportunity cost of holding a non‑yielding asset. Even modest declines in real yields tend to amplify gold's bid. Round-number gravity. $4,000 acted like a magnet once price hovered near the level, drawing in systematic and retail flows. Risk that would not fade. From defence spending and geopolitical flashpoints to fiscal noise, the background narrative kept hedges in demand."
Gold surged past $4,000 amid overlapping supports: lower expected real rates, steady central bank accumulation, persistent geopolitical risk, and episodic ETF participation. Positioning tightened and liquidity thinned around the round number, allowing systematic and retail flows to accentuate the move. Markets repriced policy toward easier conditions, reducing the opportunity cost of holding non-yielding bullion and amplifying safe-haven demand. Central banks bought in a price-insensitive manner while defence spending, geopolitical flashpoints, and fiscal uncertainty sustained hedge demand. The breakout reflects a higher implied floor for gold, though a retest below the round number remains possible if momentum cools.
Read at London Business News | Londonlovesbusiness.com
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