World Gold Council writes that gold see support from stronger inflation-hedging demand and a greater correlation between stocks and bonds. Haven demand could arise from financial speculation. Caution is warranted due to stretched valuations.

The World Gold Council highlights that gold is currently enjoying support due to a rise in inflation-hedging demand, as well as a stronger correlation between stocks and bonds. While this indicates favorable conditions for gold, the mention of caution regarding stretched valuations suggests potential volatility ahead, particularly if speculative demand emerges. Traders should watch for shifts in investor sentiment that could impact both gold prices and broader commodity trends.