Spot gold climbed to a one-week high last Friday, recording its first weekly gain in four weeks. Even though the Federal Reserve had just completed its first rate hike in three years and pushed the policy rate into the 3.75 percent to 4 percent range, gold still rebounded on the back of falling oil prices and short covering. The Middle East situation escalated again, with Houthi forces in Yemen attacking the Saudi capital and Aramco oil facilities, and Iran shooting down a reconnaissance drone in the Strait of Hormuz, injecting fresh uncertainty into both the oil and gold markets. On Monday, spot gold traded in a narrow range around 4,360 dollars. CICC Wealth Futures said gold is likely to remain rangebound in the short term, and investors may watch for buying opportunities after pullbacks. In terms of fund flows, the Bosera Gold ETF recorded a net inflow of 48.2698 million yuan, with net inflows on nine of the past ten trading days, taking in a total of 277 million yuan. As of September 18, the ETF had risen 14.02 percent over the past year, with average daily turnover of 1.334 billion yuan over the same period.
