Week In Review
- High: USD 4,888 oz
- Low: USD 4,631 oz
- Average: USD 4,750 oz
Market Overview
Gold consolidated over the past week, holding above USD 4,600 oz and trading within a relatively tight range. Momentum eased following the recent rally, with price action reflecting a period of consolidation rather than any material shift in underlying direction.
“This remains a structurally supported market. What we are seeing is not weakness, but digestion — a necessary pause following a strong upward move,” said Dorex CEO, John Kochanski.
Monetary Policy
US Federal Reserve commentary continues to signal a cautious stance. While inflation has moderated, it remains above target, supporting a “higher-for-longer” rate environment. Real yields are elevated but stable, limiting downside pressure on gold without providing a clear catalyst for a reversal.
Political & Macro Snapshot
The broader macro backdrop remains supportive. Ongoing geopolitical fragmentation, elevated sovereign debt levels, and continued fiscal expansion across major economies continue to reinforce gold’s role as a strategic hedge within reserve portfolios.
Reports that oil flows through the Strait of Hormuz are increasingly being settled in Chinese yuan or via crypto payment rails — including transit payments — highlight a gradual shift away from US dollar dominance at the margins. While still limited in scale, the linkage of energy flows, geopolitical leverage and alternative currency settlement represents a structurally supportive backdrop for gold.
Central Bank Activity
Central bank demand remains a key structural pillar. While no major weekly purchases were disclosed, the trend of reserve diversification away from USD assets persists, particularly across emerging markets.
Market Behaviour & Demand
Physical demand in Asia softened modestly at higher price levels, particularly in India, while Chinese demand remained comparatively resilient. ETF flows were broadly neutral, indicating a market pausing rather than reducing exposure.
Market Insight – Gold
Global central banks added over 1,000 tonnes of gold to reserves in the most recent full-year data — equivalent to approximately USD 100 billion at current prices. This sustained accumulation continues to underpin the long-term investment case.
Outlook
The market remains well supported. Current consolidation should be viewed within the context of an ongoing upward trend.
Image: Odfjell SE; Energy flows settled in yuan or via crypto payment rails will continue to influence global financial dynamics.
For further information:
John Kochanski, CEO
e johnk@dorex.com.au
m +61 (0)411 831 122
About Dorex
Dorex is an Australian specialist advisor to Australian gold producers. Focused on near-term production opportunities, including the reclamation of historic resources and tailings reprocessing, Dorex assists with capital efficiency and environmental stewardship in equal measure, by assisting to structure non-dilutive, bespoke financing solutions. Dorex enables producers to accelerate their path to revenue while meeting the highest standards of sustainability and community responsibility.
