- Gold jumps 1% to $4,729.59/oz, driven by renewed safe-haven buying and softer U.S. yields.
- The rally reflects investor caution ahead of key inflation data and central bank policy signals.
- Analysts warn the move could reverse quickly if macro conditions shift.
Gold Breaks Higher Amid Risk-Off Mood
Spot gold climbed about 1% to $4,729.59 per ounce on Thursday, marking a sharp upward move as traders piled into bullion amid renewed geopolitical jitters and expectations of easing monetary policy. The metal now sits near the upper end of its recent trading range, signaling a cautious tilt among investors.
“Gold is benefiting from a combination of safe-haven flows and positioning ahead of next week’s CPI report,” said a senior metals trader at a European bank, speaking on condition of anonymity. “People are hedging against the possibility of sticky inflation or a dovish Fed pivot.”
Yields and Dollar Weigh
The rally coincided with a slight dip in U.S. Treasury yields and a softer dollar, both of which lower the opportunity cost of holding non-yielding gold. The 10-year yield edged down to 4.38% as markets priced in growing odds of a rate cut later this year.
“Gold is extremely sensitive to real yields right now,” noted a commodities strategist at a global investment bank. “If the data comes in hot, we could see a sharp reversal. But for now, momentum is bullish.”
Broader Context
The move follows a period of consolidation after gold touched record highs earlier this year. Central bank buying has remained robust, with the People’s Bank of China adding to its reserves for a 17th consecutive month, according to official data.
However, some analysts urge caution. “This rally feels a bit stretched without a clear catalyst,” said a fund manager focused on precious metals. “We’re watching the dollar and the Fed closely; any hawkish surprise could unwind these gains quickly.”
Correction: An earlier version of this article incorrectly stated the previous day’s gold price. The figure has been updated.