Persistent central bank buying, led by China, offsets rising Treasury yields and dollar strength, supporting gold prices near key levels.
Gold prices climbed back above $4,100 an ounce, recovering from a nine-month low as structural demand counters macroeconomic headwinds. Rising Treasury yields and a stronger dollar had previously weighed on the metal, limiting safe-haven flows despite geopolitical tensions.
The rally reflects persistent central bank buying, particularly from China, which purchased 48 tonnes of gold in May—nearly five times its officially reported 10 tonnes. This demand acts as a price-insensitive buffer, reducing the likelihood of a prolonged correction even as real yields rise.
Analysts suggest the floor under gold may hold if yields ease, removing the primary obstacle while central bank demand remains intact. The metal remains 27-29% below its January high of $5,597.23, with medium-term direction hinging on macro trends rather than short-term conflict dynamics.