Investing.com - Gold prices experienced a slight increase of up to 0.4% on Monday, following a decline of 1.9% the previous week due to assertive statements from US and European central banks. This modest rise comes despite the ongoing chaos in Russia, which has seen a limited impact on gold's value as a safe-haven asset.
The sudden halt in Wagner leader Yevgeny Prigozhin's advance toward Moscow over the weekend has contributed to this restrained reaction for gold amidst Russia's instability. However, it is more likely that bullion will be influenced by real rates and the dollar rather than geopolitical risks, as history indicates that such rallies are typically short-lived.
Currently trading below its key technical level – the 100-day moving average – gold prices continue to feel pressure from potential further monetary tightening by the US and European central banks.
Last week was tough for investors with growing concerns about an impending recession, particularly in Europe. Despite this backdrop of economic weakness fueling demand for safe havens like gold, ANZ Banking Group's (ASX:ANZ) Brian Martin and Daniel Hynes believe money managers are gradually becoming more optimistic about gold investments.
Net-long positions rose approximately 2% during the week ending June 20 after experiencing a nearly 20% drop in bullish bets earlier this month. As of Monday morning Singapore time, spot gold increased by only 0.2%, reaching $1,924.41 per ounce while other precious metals such as silver, platinum, and palladium also saw gains alongside a slight decline (0.1%) in the US Dollar Index after it had risen by 0.8% last week.