Gold rebounds to around $4,400 after midyear price crash
Gold is making a comeback after dropping hard earlier this year.
Prices crashed from a record $5,595 per ounce in January to below $4,000 by June as people rushed for cash and some central banks tapped reserves to support domestic economies amid an oil price rally.
But by August, gold bounced back 9% to around $4,400 as oil prices cooled off and US inflation eased.
Central banks may be behind rally
Central banks and big investors may be behind gold's recent rally, with Asian markets, especially China, showing fresh interest and premiums implying renewed buying interest.
Still, demand for jewelry and gold-backed ETFs isn't strong (ETF inflows hit just $7 billion by mid-August).
Plus, technical charts show gold is close to being overbought, with a key resistance point at $4,504 that could slow down further gains in the short term.