Gold snapped its 4-day rally on Thursday after Trump signalled tougher US military action. Iran and Oman are reputedly drafting a protocol to "monitor transit" through the Strait of Hormuz.
Gold's sharp selloff have pushed the metal firmly into bear market territory, but some market veterans are sticking to bullish long-term forecasts, citing persistent geopolitical risks and central bank buying.
HSBC pointing to a combination of a stronger US dollar and a hawkish repricing of interest rates as key headwinds. Last year, AJ Bell data pointed to a pickup in interest in global funds that exclude the US.
Standard Chartered expects the metal to rebound toward $5,375 per ounce over the next three months once the current phase of deleveraging subsides, with technical support seen around $4,100.
Brazil's central bank doubled its gold holdings in 2025, making it the second-largest component of its forex reserves after the dollar. The move was in line with other BRICS members.
BofA analysts are projecting mild stagflation, and $100 per barrel oil all year as a result of the ongoing war. The scenario would spur gold investment demand.
Gold bottomed out around $4,100 in 23 March, and a steady recovery ensued. It is expected to hit $4,800 afresh next week, if there is no fire flareup in the Middle East.
Asset recap
As of market close on 2 April, among EBC major products, US West Texas Oil led gains. The price hit the highest level since the 2008 financial crisis amid uncertainties about reopening of the Strait of Hormuz.
Intel bought back its Ireland chip factory stake from Apollo. That reflects the continued business momentum underpinned by the growing and essential role CPUs play in the era of AI.
Tesla shares saw their worst slump of the year, after the company's deliveries and production report for the first quarter showed a drop from the prior period, with mild growth from a year earlier.
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