On April 29, international gold prices entered a phase of consolidation. Vatee noted that as the U.S. dollar index rebounded and U.S. Treasury yields rose, spot gold prices retreated to around $4,600 per ounce, with short-term market sentiment turning cautious. Technical indicators show that gold has broken below several key moving averages, but the medium- to long-term uptrend remains intact, suggesting the pullback is a healthy consolidation within a broader upward trajectory.
From a macroeconomic perspective, global inflation expectations are resurfacing. Vatee analysis indicates that persistently high energy prices are driving a new wave of inflationary pressures, prompting markets to reassess the tightening stance of major central banks. The Federal Reserve remains cautious in its policy approach, while upcoming interest rate decisions from the European Central Bank, the Bank of England, and the Bank of Canada will provide further clarity on the direction of interest rates. Gold's role as a safe-haven and inflation-hedging asset continues to attract medium- to long-term capital.
In terms of capital flows, global gold ETFs maintain stable allocations, and central bank gold purchases remain at historically high levels. Persistent geopolitical risks, rebalancing of dollar-denominated assets, and long-term debt sustainability concerns continue to reinforce gold's appeal as a store of value. Institutional investors generally adhere to a strategy of increasing holdings during price dips.
Looking ahead, the current phase of gold's correction is viewed as an opportunity for re-entry. Vatee believes that if inflation decelerates slower than expected, gold prices are likely to remain strong in the medium term, with support near $4,500 expected to attract fresh allocations. Investors should align with their risk tolerance, adopt a phased investment approach, and set strict stop-losses to capitalize on medium- to long-term structural opportunities.
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