Gold prices have climbed back above the $5,000 per ounce level as investors who left the market during last week’s sharp sell-off began buying on the dip, marking a notable recovery after a turbulent period in the precious metals market.
After an exceptionally volatile week that saw bullion fall more than 10 % from record highs, spot gold regained ground and traded above $5,000 in early Asian sessions, rising as much as around 1.7 % in response to renewed demand from bargain hunters.
The rebound has been supported by a mix of macroeconomic and geopolitical factors.
A weaker U.S. dollar amid shifting currency expectations helped make gold more attractive to holders of other currencies, while recent political developments such as the election victory of Japan’s Prime Minister Sanae Takaichi, which is seen as reinforcing expectations for looser fiscal policy further underpinned gold price gains.
Central banks have also remained active buyers; data showed that China’s central bank extended its gold purchasing streak for the fifteenth consecutive month, highlighting resilient official demand.
Despite the recent upswing, markets remain cautious. The prior sell-off followed record-setting rallies fueled by speculative interest earlier in the year, and investors are closely watching upcoming U.S. economic data including jobs and inflation figures for signals on the Federal Reserve’s policy direction, which could influence future bullion demand.
Silver and other precious metals have similarly regained value alongside gold, reflecting broader safe-haven and rebound buying in commodities.
In summary, gold’s recovery above $5,000 reflects a return of dip buyers and supportive global dynamics after pronounced volatility, while investors remain attentive to economic indicators that could sway market sentiment in the weeks ahead.
Image Credit: Nairametrics
Source: Nairametrics
