London-listed gold miners are expected to attract strong interest at the open, after bullion prices rebounded sharply overnight. Investors returned to the haven asset amid a sell-off in global equities driven by mounting concerns over stretched valuations.
Spot gold was $3,970 an ounce in Asian trading, recovering from a near 2% drop the previous day.
The rebound came as government bonds rallied and the dollar steadied at a multi-month high, reflecting a shift in sentiment following the steepest decline in global stocks in almost a month.
Tuesday’s decline in bullion had followed comments from several Federal Reserve policymakers, who signalled caution around the need for further interest rate cuts, citing a still-elevated inflation outlook.
Their remarks prompted traders to reassess expectations for monetary easing ahead of further appearances from US central bankers this week.
Despite recent volatility, gold remains around 50% higher year-to-date, having touched a record last month. Analystst said the metal is likely to consolidate within a $3,800 to $4,050 range, but noted ongoing demand from central banks and private investors is likely to support prices in the longer term.
Silver and palladium also posted modest gains during the session.