Spot gold prices climbed to a three-month peak near $4,640 per ounce before retreating $50 amid geopolitical tensions and demand recovery signals.
Gold prices reached a three-month high, trading above $4,640 per ounce before dropping $50 to below $4,600. The rally was driven by India’s gold imports doubling in July, signaling a demand recovery, and broader fiscal credibility concerns, according to market analysts.
Prior to the pullback, gold had traded near $4,600, with forecasts from Goldman Sachs suggesting options demand could push prices past $4,900. The metal’s movement followed heightened geopolitical risks, including tensions in the Hormuz Strait and U.S.-China trade disputes.
Market reaction was mixed, with the pullback occurring despite ongoing macroeconomic uncertainties. Analysts noted the retreat may reflect profit-taking after a rapid ascent.