Gold's Consolidation Masks Structural Support Beneath

The price of gold has been consolidating after a steep ascent to a three-month high in August. Despite shedding 3.2% on Friday, the metal still stands 9.5% higher over the past 30 days.

This resilience underscores that the pullback looks less like a trend reversal and more like a breather after the rally. Two competing gravitational pulls are at play: shifting expectations for US monetary policy and geopolitical risk aversion.

The energy-driven inflation threat, sparked by rising oil prices, could force central banks into a more restrictive stance, pushing real rates back up and undercutting gold's fundamental case.