Gold Faces Crucial Week Ahead as Fed Decision and Middle East Tensions Take Center Stage
Gold prices closed last week at $4,050 an ounce as markets navigated geopolitical tensions, central-bank policies, and higher bond yields.
The precious metal initially rallied on rising Middle East conflicts but lost momentum when Brent crude oil prices surged above $100 a barrel, pushing up Treasury yields and the US dollar.
Despite this reversal, gold maintained its safe-haven status, supported by persistent central-bank buying. Next week's Federal Reserve meeting and US jobs report will be crucial in determining gold's next move.
The World Gold Council reported that central banks net purchased 41 tonnes of gold in May, with Poland, China, and Singapore leading the pack. A record 45% of central banks have an appetite to increase their gold reserves.