12/08/2026
Gold is holding on to most of this week's rally to a 10-week high, and the story underneath is more layered than "safe haven demand" π
Softer US jobs data has traders dialling back Fed rate hike expectations, which lowers the cost of holding an asset that pays no interest. At the same time, Strait of Hormuz tension, a North Korea missile launch and reported Houthi attacks on shipping are all keeping risk elevated, which cuts both ways for gold depending on whether inflation fears or safe haven flows are winning that day.
Here's the part traders should not skip: gold just posted its most overbought reading since March. That does not mean a drop is coming, but it does mean the odds of a sharp move either way have gone up.
Full breakdown, including what that overbought signal actually means for positioning π
https://go.thinkmarkets.com/3Uemouh