Gold prices have come to a halt after a steep fall, steadying in early trading after renewed diplomatic cordiality between the US and China. The precious metal, traditionally used as a hedge against geopolitical risk, suffered a setback as tensions eased, leading to a global risk-on mood among investors.
The recent sell-off surprised many, particularly those who expected ongoing market volatility. But analysts indicate the dip might prove temporary, with underlying drivers such as inflation fears and central bank purchases continuing to underpin long-term bullish gold fundamentals.
Deeper correction buyers might be left disappointed,” says a commodities strategist. “Short of a big change in monetary policy or another geopolitical shock, this could be as cheap as gold is going to get for some time.
For investors holding out for a golden moment, this lull in decline might be the perfect window of opportunity to get in. As long as uncertainty still haunts wider markets, gold may continue its uptrend — and this stall could just be the calm before the rebound.
