Gold Shows Weakness as Physical Markets Cool and Energy Risk Looms

XAUUSD0.81%
According to the World Gold Council, on June 4, physical gold markets in India and South Korea showed weakness with discount trades, while Japan experienced sporadic selling. Global gold ETF inflows remained weak throughout May. Energy market volatility poses the greatest near-term risk, with oil prices driving market sentiment, inflation expectations, and bond yields. Rising energy prices could first push bond yields higher and strengthen the U.S. dollar, potentially extending gold's current weakness.
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