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Gold at the inflection point: XAU/USD consolidates as Fed week and GDP data loom
Sovereign demand remains gold's structural anchor. Central banks across emerging and developed markets — including China, Malaysia, and South Korea — continue expanding reserve allocations, providing price-insensitive demand that speculative shorts must absorb. De-dollarization flows and persistent geopolitical fragmentation sustain gold's institutional risk-premium in parallel. The bearish case: The dominant near-term headwind is a hawkish Fed repricing. Rate cut probability for 2026 has collapsed from 45% to 27% in a single week, underpinning the US Dollar and suppressing gold's recovery. Strait of Hormuz ... (full story)