Gold Prices Hold Steady Amid Conflicting Forces

Gold prices have stabilized near $4,314 an ounce as the market grapples with conflicting forces. The metal slipped 0.8% on Monday to $4,313.78 after a volatile week that saw it bounce back from Friday's selloff.

The past week was marked by a tug-of-war between bullish and bearish sentiment. Thursday's session belonged to the bears, with prices falling over 1% to $4,355.85 an ounce due to solid US inflation readings and rising oil prices.

However, Friday flipped the script as physical demand from Asia absorbed financial-sector selling, sending spot gold up 0.7% to $4,348.89 an ounce. Chinese investors continued their heavy accumulation, providing a steady bid that cushioned the downside.

Central banks remain major buyers of gold, with the World Gold Council reporting net purchases of 23 tonnes worldwide for July 2026. Meanwhile, regulators are tightening restrictions on illicit financial flows, with Switzerland's Federal Council imposing sanctions on Sudanese gold imports and exports.