Gold prices experienced a modest increase during the Asian trading session. Spot gold rose 0.1% to $4,014.07 per ounce. Analysts from ANZ Research noted in a report that physical demand for the metal and central bank purchases are underpinning the gold market. These analysts added that while gold faces short-term headwinds from expectations of Federal Reserve tightening and a robust US dollar, investment positioning in gold appears thin following months of outflows from exchange-traded funds (ETFs), suggesting that the potential for further downside may be limited. High interest rate environments typically weigh on non-yielding assets like gold.
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