Gold Gains 1.1% with Three-Week ETF Inflows Recovery, BMO Notes
Gold climbed as much as 1.1% after a two-day drop following an extended Iran ceasefire, with oil trading near $100 a barrel and the dollar slipping 0.2%. BMO Capital Markets reports three consecutive weeks of gold ETF inflows, though Asian investors began selling once prices neared $4,850 per ounce.
1. Gold Price Recovery
Gold reversed a two-day decline, rising as much as 1.1% after the Iran ceasefire extension eased geopolitical tensions. Oil held around $100 a barrel while a 0.2% drop in the dollar provided additional support for bullion priced in US dollars.
2. ETF Inflow Trends
BMO’s capital markets division highlights a consistent recovery in gold ETF inflows over the past three weeks, signaling renewed investor appetite after the March sell-off. This inflow trend underpins the recent upward momentum in prices.
3. Asian Investor Pressure
Despite inflows, upward momentum slowed last week as Asian investors began liquidating gold positions once spot prices approached the $4,850 per ounce threshold. This regional selling cap could temper further gains if sustained.
4. Interest Rate Headwinds
The ongoing energy-supply shock and heightened inflation risks have raised the likelihood of central banks holding or raising rates. Higher yields remain a potential headwind for non-yielding bullion moving forward.