By Konstantinos Chrysikos, Head of Customer Relationship Management at Kudotrade
Gold moved back above the key USD 5,000 per ounce level on Wednesday, extending its recovery after a sharp correction. The metal continued to attract dip buyers while geopolitical risks remain a central pillar of support.
Concerns in the Middle East intensified after US forces downed an Iranian drone near a carrier group, reinforcing gold’s appeal. While diplomatic channels with Iran remain open ahead of scheduled talks, the situation remains highly sensitive. In Eastern Europe, markets are also navigating a fragile backdrop as Ukraine-US-Russia discussions are set to take place in Abu Dhabi, while tensions remain elevated on the ground.
Looking ahead, gold’s outlook remains constructive into 2026. Central bank demand continues to provide a firm anchor, with official purchases led by institutions in Poland, Uzbekistan and Brazil, alongside steady ETF inflows from private investors. Together, these forces keep the longer-term bullish narrative firmly intact.