The price of gold extended its rebound on Monday, continuing its recovery streak as investors took advantage of recent dips to adjust their positions. Analysts note that while the accumulation of gold by other international financial entities acts as medium-term support, additional signals of massive reserve sales could add bearish pressure to the precious metals market. The analyst highlights the case of Turkey, which reported a significant decrease in its gold reserves after intervening to stabilize the lira. Despite the current rally, the prospect of restrictive monetary policy in the United States and the strength of Treasury bonds limit the sustained advance of the metal. This move comes after the metal touched its multi-month lows last week. The current market environment continues to be conditioned by expectations of high interest rates, which dims hopes of rate cuts in the short term and exerts direct pressure on non-yielding assets like gold, thus limiting their long-term growth potential.
