ING strategists Ewa Manthey and Warren Patterson report Gold has extended gains above $4,600 as it rebounds from a nine‑day losing streak. They attribute support to diplomatic signals around Iran and the Strait of Hormuz, weaker Oil prices and a softer Dollar, while warning that Fed expectations, geopolitics and potential central bank gold sales will remain key drivers.

Fed expectations and geopolitics key

"Gold extended gains for a second session, trading back above $4,600/oz in early trading after snapping a nine‑day losing streak. Support came from comments by US President Trump suggesting Iran had offered a goodwill gesture linked to energy flows through the Strait of Hormuz, alongside diplomatic signals from China encouraging negotiations. Easing oil prices and a softer US dollar added support."

"Near term, gold remains highly sensitive to Fed policy expectations, currency moves and geopolitical developments. Risks remain elevated as Iran retains control over the Strait of Hormuz and Israel continues operations against Iranian assets. Regional tensions were further underscored by the US decision to deploy an additional 2,000 troops from the 82nd Airborne Division."

"There are also tentative signs that some central banks, particularly those exposed to higher energy import costs, may tap gold holdings to stabilise currencies, with Turkey’s central bank preparing measures to limit war‑related volatility in the lira."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)