Gold: Is risk-off demand underpinning renewed gains? – Deutsche Bank

Gold drew support as a defensive asset amid pressure on equities and declining bond yields, with Deutsche Bank noting a rise to the $4,100 region following a +5.06% weekly gain, its strongest since August. The bank linked the advance to risk aversion triggered by the AI-driven equity sell-off and lower oil prices. The prevailing macroeconomic backdrop consequently favoured Gold.

How did equity turmoil support safe-haven demand?

"Credit was actually fairly flat on both sides of the Atlantic but the risk-off tone in equities meant it was a good week for gold, which was up +5.06% (-0.42% Friday) in its best week since August."

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"So along with the risk-off tone from the AI selloff, that helped to bring down sovereign bond yields around the world."

"Meanwhile, the 10-year US Treasury yield is up +1bps at 4.87% and Brent down around a percent as I type."

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