Gold: Risk-off flows support fresh gains – Deutsche Bank

Deutsche Bank reports that gold prices have risen to $4,100 following a strong weekly performance of +5.06%, marking the highest gain since August. The bank attributes this increase to risk-off sentiment stemming from the AI-driven equity selloff and a decline in oil prices. As equities face pressure and bond yields retreat, gold has emerged as a defensive asset in the current market conditions.

Although credit remained relatively flat on both sides of the Atlantic, the risk-off tone in equities played a significant role in driving gold's gains, which were up +5.06% as of Friday (-0.42%). The week's bullish run for gold corresponds with a decline in sovereign bond yields worldwide. Meanwhile, the 10-year US Treasury yield has increased by 1 basis point to 4.87%, while Brent oil prices have decreased by nearly one percent.