This week’s H.4.1 report shows a modest improvement in system liquidity. Bank reserves increased while ON RRP continued to decline, partially offset by a moderate rise in the Treasury General Account. Market behavior continues to reflect volatility repricing and positioning adjustments rather than liquidity contraction.

This report presents a medium-term outlook for gold within the current re-calibration regime. Despite short-term overbought conditions, liquidity remains supportive rather than contractionary, while sustained central bank accumulation and improving relative performance versus equities indicate that the secular uptrend remains intact.