Gold prices saw a mild recovery on Thursday after slipping to their lowest level in over a month, aided by a weaker US dollar that made the metal more attractive to global buyers. Despite this, upside remained restricted as the US Federal Reserve and Bank of Canada adopted a cautious, hawkish tone, signalling reluctance on rate cuts.
Heightened geopolitical tensions in the Middle East, along with oil prices climbing above $110 per barrel after Iran’s strikes on energy infrastructure, have fuelled inflation worries. Although gold is considered a hedge against inflation, elevated interest rates continue to limit its broader upside potential.