Gold Prices Briefly Drop Below $4,100/oz, Rebound After Central Bank Buying

Spot gold saw a temporary dip below the $4,100 per ounce level, experiencing an intraday decline of 1.72%. This move was triggered by increased demand for safe-haven assets from central banks, such as Brazil’s recent purchases to hedge against policy risks and currency fluctuations. Meanwhile, investors are shifting towards yield-generating assets, potentially impacting the crypto market. Notably, these dynamics underscore potential shifts in investment flows due to a combination of macroeconomic pressures and the risk aversion inherent in precious metals markets.