Gold Holds Gains as Geopolitical Uncertainty and Dollar Softness Provide Support

Safe Haven Consolidation

The market is currently in a consolidation phase following a volatile start to February. While high interest rates remain a headwind, the risk of a localized blockade in the Strait of Hormuz has created a permanent risk premium for precious metals.

Central Bank Floor

Sustained buying from Asian central banks has provided a structural floor. Analysts report that sovereign wealth funds are utilizing minor price dips to diversify away from G7 fiat currencies, effectively protecting the $5,000 level.