NEW YORK: Gold steadied after its first weekly gain since the Middle East conflict began, as dip-buyers supported prices while the market awaited clarity on the duration of the conflict.
Bullion recovered some early losses to hold near US$4,500 an ounce, showing resilience despite the continued rise in oil prices and downturn in equities.
That’s an indication that investors stepped in to take advantage of prices that have been dragged down by the war over the past month as inflation worries rise and prospects for interest-rate cuts fade.
Recent developments have raised concerns of a prolonged conflict that could lead central banks to sell gold and hike interest rates to tame inflation.
“Gold could remain vulnerable” in the short term, said Alexandre Carrier, a portfolio manager at the DNCA Invest Strategic Resources Fund, citing the risk of more central-bank selling and the liquidation of positions by investors. — Bloomberg
