DBS Group Research economist Eugene Leow notes that Gold has been consolidating in a tight range despite sharp moves in energy markets, as traders await key US CPI data. The report highlights stronger institutional demand, with rising ETF holdings after late-March weakness. Geopolitical risks in the Middle East and upcoming US data remain key drivers for Gold.

Institutional demand and geopolitical risk

"Gold prices consolidated in a narrow range overnight, exhibiting muted price action despite heightened volatility in energy markets."

"Doubts over the durability of the Middle East ceasefire, underscored by the continued blockage of commercial shipping through the Strait of Hormuz, pushed oil prices toward the $100 threshold."

"Yet, real yields remained largely unchanged, decoupling from energy market turbulence as investors retreated to the sidelines ahead of today’s pivotal US CPI release."

"Institutional appetite for gold has strengthened noticeably over the past week."

"ETF holdings have been rising steadily as institutional investors systematically scale into positions, capitalising on late-March price weakness to establish strategic exposure. In the near term, attention will remain focused on the outcomes of upcoming discussions between the US and Iran and whether transit activity normalises in the coming days."

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