Gold Rises Amid Central Bank Focus on Security

On Monday (10), gold prices saw a recovery, albeit remaining below historical highs reached before the Iran conflict. The primary driver of this increase was continuous purchases by central banks, notably China, which increased its reserves by 20 tons recently. This action reflects a global trend toward seeking security and diversifying assets amid political and economic uncertainties. Gold values on the New York Mercantile Exchange (Nymex) rose 0.46% to US$ 4,387.1 per troy ounce, despite still being far from its historical peak of US$ 5,354.8 in January. The Middle East remains under tension with uncertainty about the reopening of the Strait of Hormuz and U.S. economic measures against Iran. Additionally, investors anxiously await the U.S. inflation report, which could influence future monetary decisions by the Federal Reserve. While gold's upward trend continues due to Chinese demand and global uncertainties, its progress is limited by central banks' reluctance to purchase large volumes due to domestic economic concerns.