Gold jumped in early Asian trade after the Federal Reserve kept policy rates steady overnight. A 1.6% rise pushed spot prices to $4,326.79 an ounce, buoyed by renewed U.S.–Iran diplomatic talks that have lifted risk sentiment this week and helped offset the Fed’s hint of a rate hike later this year. The move also steadied the dollar, easing pressure on precious metals.

DBS strategist Sherilyn Chew says the surge is largely event‑driven, leaving Gold in a tight trading band. Central‑bank buying remains strong; surveys show governments plan to add to reserves throughout the next year, creating a medium‑term floor for prices despite limited macro momentum. Asian central banks, notably China and India, have signaled larger allocations, reinforcing the trend, still for now.

DBS expects Gold to stay rangebound in the short term, with upside potential if bond yields ease. Investors will watch Treasury yields closely; a dip in 10‑year yields toward 3.9% could spark a rally. A decline could lift spot prices above current levels, reinforcing the metal’s role as a hedge amid uncertain rate paths today.