Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of lower US interest rates, and a weakening dollar. The main trigger came from weekend data showing the People's Bank of China (PBOC) again adding to its gold reserves. This means China has recorded gold purchases for the 15th consecutive month, indicating that demand remains strong amid fiscal concerns and global economic shutdowns. From the US side, the market is also increasingly betting that the...
Oil remained in the green zone on Tuesday (February 10th), as the market refused to abandon the Middle East risk premium. As of 13:07 GMT (20:07 WIB), Brent rose +0.4% to $69.32/barrel, while WTI rose +0.2% to $64.51/barrel. The primary fuel source remains the same: the Strait of Hormuz. US maritime authorities have issued guidance for US-flagged vessels passing through to stay as far away from Iranian territorial waters as possible and to verbally refuse any requests for boarding from Iranian authorities. Although only "guidance," the market interpreted it as a risk signal as Hormuz is a...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter interest rate expectations. Spot gold fell around 0.2% to $5,047.11/oz. What kept gold resilient wasn't just the data and the weakening dollar, but also the persistent geopolitical risk premium. Most notably, US-Iran tensions have once again brought the Strait of Hormuz into the spotlight. The US recently issued guidelines for US-flagged vessels passing through to stay away from Iranian territorial...