Gold edges higher in Asian trade as physical demand for the metal, particularly in China, and central bank buying continue to underpin the market, according to ANZ Research analysts.

While bullion faces near‑term headwinds from Federal Reserve tightening expectations and a firm dollar, investment positioning in the yellow metal looks lean after months of exchange‑traded fund outflows, suggesting further declines could be limited.

A higher interest‑rate environment typically weighs on non‑yielding assets like Gold. Spot Gold rises 0.1% to $4,014.07 a troy ounce.

Analysts note that the combination of sustained consumer demand in China and ongoing central bank purchases provides a floor for prices, even as macroeconomic pressures persist.