Gold Prices Stuck at $4,055.70 Amid Central Bank Hoarding and Energy Crisis

Gold prices are stuck at $4,055.70 an ounce after changing hands on Friday, but this calm hides a market struggling with conflicting forces.

The energy complex is exerting pressure, as Brent crude surged past $100 a barrel for the first time since May due to Houthi rebel attacks and US strikes against Iran.

Rising energy costs fan inflation fears, reinforcing expectations of tighter Federal Reserve policy, which is a major headwind for non-yielding assets like bullion.

However, central banks have been accumulating gold at an unprecedented rate, with official sector holdings reaching 36,664.5 tonnes, representing 16.7% of all the gold ever mined by humanity.