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Highlight: Central banks dominated the week. The Fed raised rates by 25bp to 3.75%–4.00%, its first hike in three years, and signalled at least one more increase this year. The Bank of Japan also hiked by 25bp to 1.25%, while the Bank of England held at 3.75% but hinted at further tightening. Middle East tensions added to worries about oil supply and inflation, with inflation picking up in the Eurozone, UK, Japan and India.
Gold update: Gold held up surprisingly well. The LBMA PM price slipped 0.9% to US$4,348/oz, which turned its year-to-date performance slightly negative at -0.4%. But given the headwinds, WGC's main point is resilience: two rate hikes, rising yields and a stronger dollar didn't derail gold, with most gains coming during Asian trading hours.
Who's buying: Global gold ETFs saw accelerating inflows, while COMEX futures net longs fell. WGC agrees with the FT's view that gold is now backed by broad, structural conviction across all types of investors. If that's right, gold may become less sensitive to swings in yields and the dollar.
Key levels: Gold is holding support at its 55-day average of about US$4,273/oz. That raises the chance of a test of resistance at the 200-day average, around US$4,541/oz. A sustained break below US$4,231/oz would signal more downside risk.
Weekly radar: The Trump–Xi meeting on Thursday was flagged as the key event, with possible talks on the trade truce, AI controls, critical minerals and the Middle East. Investors were also watching Fed speakers for signs of whether last week's hike was a one-off or the start of a hiking cycle.
Takeout: Rates went up, the dollar got stronger, and gold barely flinched, which suggests steady underlying demand.