Credit Agricole says gold’s recent decline has priced in key negatives, with central bank demand and de-dollarization trends supporting a recovery.
Gold prices recovered to $4,100 today after a three-day slide, as comments from US officials eased geopolitical tensions. The rebound follows a four-month decline that pushed prices toward $4,000, a level analysts now see as oversold.
Credit Agricole argues that many bearish factors, including energy price shocks and a stronger USD, are already reflected in gold’s valuation. The firm highlights central bank demand for XAU as a hedge against USD weaponization and potential fiscal dominance over the Fed as key supports.
A fading energy shock could further bolster gold, allowing central banks to resume purchases. The firm’s late June note also flagged gold as a victim of the USD’s 2026 resurgence, suggesting a reversal may be underway.