Gold Rebounds Amid Lower Oil Prices and Softer Inflation

Gold has staged a strong rebound in August after plummeting to $4,000 an ounce in June due to the US-Israeli war with Iran.

The precious metal rose by nearly 9% from its low point in January to around $4,400 an ounce, a sign that institutional investors and central banks are regaining confidence in it.

Analysts believe that the recent oil price drop and softer US inflation data have contributed to gold's resurgence, with Ross Norman calling it 'as though the handbrake has finally been released from gold.'

Despite some headwinds, including faltering talks to end the Iran war and subdued jewellery demand, James Steel of HSBC thinks that gold is poised for further gains if oil prices remain stable.