Gold is boring again, but that's the point

Gold has moved into a quiet, range-bound phase after a blockbuster start to the year, trading between about $4,600 and $4,900 an ounce as volumes decline. Despite short-term volatility and higher rate expectations increasing the opportunity cost of holding bullion, structural demand remains intact: central banks—notably the People’s Bank of China—have been buying on dips, and industry efforts to win High-Quality Liquid Asset (HQLA) recognition for gold could further cement its role alongside cash and sovereign debt. The article frames the consolidation as stability rather than weakness, with long-term holders and official-sector accumulation underpinning prices even as momentum cools. Overall, the market impact is a pause in speculative activity but continued strategic accumulation that supports elevated gold levels.