Gold Holds $4300 Support as BMO Highlights Strengthening Demand

Gold is testing critical support near $4300 an ounce and currently trades at $4279.80, down nearly 2% amid a stronger US dollar and higher bond yields. BMO Capital Markets analysts highlight robust investment demand as investors hedge against currency debasement and US fiscal concerns. Physical buying is also firming: India’s local discount narrowed by $20 while Chinese net imports of non-monetary gold jumped 48% year-on-year to 124.5 tonnes in August. Global gold ETFs attracted $4.2 billion in inflows last week, led by $2.2 billion from North American funds. Despite BMO’s expectation of another 25-basis-point Fed rate hike by year-end, the bank forecasts an average price of $4625 in the second half of 2026 and a return above $5000 in the first quarter of 2027.