0822 GMT - Gold is likely to benefit from continued central-bank buying, which appears to be the strongest structural force in the precious metal markets, says Carsten Menke at Julius Baer. Central bank buying should continue for another three to five years given emerging economies' desire to be less dependent on the dollar as a reserve currency and a below-average share of gold in their reserves, he says in a note. While volatility may remain elevated as long as the Iran war lasts, and concerns of U.S. monetary policy tightening persist, Julius Baer still sees a favorable fundamental backdrop for gold and remains constructive on the precious metal. (monica.gupta@wsj.com)
Gold Falls on Rate-Hike Fears as Middle East Hostilities Escalate -- Market Talk
0809 GMT - Gold prices fall 1% as fresh strikes between Israel and Iran dim hopes for a near-term deal in the Middle East, heightening inflation concerns and reinforcing expectations of higher interest rates. "Following Friday's jobs report and a broader deterioration in risk sentiment that also weighed on equities, bullion closed below its 200-day moving average for the first time since October 2023," analysts at Saxo Bank say. "A combination of resilient economic growth and rising inflation expectations has created a challenging environment for gold, overshadowing the longer-term supportive themes of central bank buying, fiscal concerns, and reserve diversification." In early European trading, New York gold futures are down 1% to $4,320.40 a troy ounce. (giulia.petroni@wsj.com)
