News
Central Banks · Gold · Inflation · Volatility
ING strategists Ewa Manthey and Warren Patterson report gold is on track for a third consecutive weekly gain, up nearly 2%, supported by diplomatic optimism on Iran, central-bank demand, and rising inflation expectations, despite near-term volatility.
Gold's recent upward movement is attributed to diplomatic progress concerning Iran, sustained demand from central banks, and increasing inflation expectations. However, near-term price action remains highly headline-driven and volatile due to unresolved geopolitical risks and a fragile ceasefire.
Since the conflict began, gold has fallen around 10%, as macro headwinds, specifically higher real yields and a firmer US dollar, outweighed safe-haven demand. ING maintains a constructive longer-term outlook for gold, anchored by continued official sector buying, ongoing reserve diversification, and the expectation that real rates will eventually become less restrictive.
Yields Climb: Inflation, Mideast Conflict Drive Fed Hawkishness
Middle East Conflict Weakens Euro, Boosts US Dollar
Barkin: Iran War Raises Economic Uncertainty, Holds Rates
Asia FX Plummets; Japan CPI Misses BOJ Target
ING: Gold Faces Volatility, Long-Term Outlook Firm(current)