Spot gold has tumbled to its lowest level in six months, shedding the safe-haven premium that typically supports the precious metal during periods of heightened geopolitical tension and sticky inflation.
Despite the sharp drawdown, prices staged a modest recovery Thursday as traders began covering short positions following the recent sell-off.
The bounce underscores the tug-of-war between macro headwinds and underlying safe-haven demand, though faltering technical indicators continue to cap upside momentum.
With inflation data remaining sticky, the Federal Reserve’s higher-for-longer stance continues to anchor real yields, keeping a lid on the non-yielding metal’s near-term trajectory.