A pullback in oil prices and a weaker USD lifted gold, though ETF flows suggest investor demand remains subdued.
Gold prices recovered as oil prices retreated, easing inflation concerns and reducing expectations of further Fed tightening. A softer US dollar also supported the move, following a recent selloff in precious metals.
ETF holdings data show gold demand remains weak, with total known holdings lower month-to-date despite slight stabilization. This indicates the rebound is driven by relief in oil and yield pressures rather than renewed investor interest.
Central banks continue to provide structural support, with Poland adding 82 tons of gold this year, bringing its total reserves to 632.4 tons. The country aims to reach 700 tons, reinforcing long-term demand.