"Traders could remain cautious amid the nomination of Kevin Warsh to lead the Federal Reserve, which prompted a repricing of non-yielding assets. However, the geopolitical backdrop remained supportive. In the Middle East, while tentative signs of diplomatic engagement emerged, risks remain elevated. Tensions in Eastern Europe remain high, which could help stabilize the market and fuel safe-haven assets demand. The bullish outlook could remain intact despite last week's selloff."
"The market could continue to see resilient demand from both central banks and private investors despite heightened volatility. Official-sector buying exceeded expectations, with roughly 230 tonnes purchased in Q4 and about 863 tonnes accumulated in 2025. Investment demand has also broadened, spanning ETF inflows, strong bar and coin purchases. Looking ahead, markets will closely track monetary policy signals. Any indication that Fed independence could be compromised may ultimately re-ignite upside potential for gold after this corrective phase."
Gold fell to about USD 4,400 before exhibiting a modest rebound. Markets showed caution following Kevin Warsh's Fed nomination, which triggered repricing of non-yielding assets. Geopolitical tensions in the Middle East and Eastern Europe continue to support safe-haven demand despite tentative diplomatic signs. Central-bank and private investor demand has remained resilient, with official-sector purchases around 230 tonnes in Q4 and about 863 tonnes accumulated in 2025. Investment demand widened via ETF inflows and strong bar and coin purchases. Monetary policy developments and any perceived threat to Fed independence could reignite upside potential for gold after this corrective phase.
Read at London Business News | Londonlovesbusiness.com
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