Gold Price Bounces Back from Eight-Week Low on Strong Shanghai Premium

The gold price rallied from an eight-week low in London on Tuesday as it recovered from the pressure of surging bond yields and rising oil prices.

In China, gold trading put bullion at a three-month high in Shanghai ahead of the Golden Week holidays, with the USD equivalent price trading more than $26 per troy ounce above London quotes.

The approach of China's 2025 Golden Week holidays saw gold and silver prices fall worldwide, but unlike previous years, this pullback came within a strong move higher. Analyst Bernard Dahdah at Natixis noted that gold market participants have been sensitive to expectations of the next Fed rates decision since the start of the US-Iran war.

The correlation between gold and the 10-year yield has returned, but precious metals strategist Nicky Shiels at MKS Pamo believes it's in the buy-zone if one thinks the rates and US$ move have overextended.