Gold Consolidates Around $4,000 Support Level Amid Rate Hike Uncertainty

Gold prices are consolidating around the $4,000 support level after a significant pullback from its January high of $5,595 per ounce.

The recent pause in Federal Reserve rate cuts and softer labor data have reduced fears of further rate hikes, benefiting gold's appeal as a non-yielding asset.

Official sector accumulation, particularly from BRICS nations and central banks, continues to support gold prices amid rising national debt risks and geopolitical tensions.

Banks have adjusted their year-end gold targets, viewing it as an alternative asset influenced by interest rate policies and central bank demand.