Gold (GC=F) prices rebounded on Thursday, buoyed by bargain hunting after the precious metal slipped to a one-week low in the previous session amid renewed optimism surrounding US-China trade relations.
Gold futures were up 1.7% to $3,349.30 per ounce at the time of writing, while the spot price climbed 0.4% to trade at $3,330.04 an ounce.
The moves come after a volatile week for the yellow metal, which hit a record high of $3,500.05 on Tuesday before sliding below $3,300 on Wednesday.
Analysts attributed Thursday’s rally to investors capitalising on the dip, reassured by resilient underlying fundamentals.
“The kind of volatility we’re seeing this week is being driven by technicals and headline risk. But the fundamentals are strong, so dip buying is effectively a function of investors moving in on the basis of the bigger picture,” Capital.com’s financial market analyst Kyle Rodda said.
Gold, which offers no yield, has long been viewed as a haven during times of geopolitical or economic uncertainty. That appeal appeared to strengthen further on Thursday following news of intensified conflict in Ukraine. A deadly drone and missile assault on Kyiv by Russian forces — even as ceasefire talks, brokered by the US, continue — has heightened concerns over regional instability.
Adding to the bullish sentiment, JP Morgan analysts reiterated their forecast that spot gold could reach $4,000 per ounce by 2026, citing continued global macroeconomic uncertainty and persistent demand for safe haven assets.