Demand for precious metals is currently slowing down in Asia, with tensions in the Middle East also cooling down. This has made it challenging for gold prices to increase in the short term. Despite some initial benefits from the Federal Reserve’s decision not to raise interest rates and the possibility of reducing rates in the second quarter, the upward momentum has weakened as demand in Asia has slowed and tensions in the Middle East have eased. Gold prices fell nearly 2% last week, reaching $2,301 per ounce.
Experts are feeling pessimistic about the short-term outlook, with a survey showing a split in opinions on where prices may go next. Some analysts believe the price of gold will decrease due to falling demand in Asia, while others still see potential for the market to rise. Factors like a strengthening yuan, rally in Hong Kong stocks, and the Chinese market holiday have all influenced buying pressure.
Looking ahead, the market is expected to see fewer economic data releases this week, with the Bank of England’s interest rate decision being a key event. While some experts foresee a decrease in gold prices in the short term, others remain confident in the market’s stability. Factors like inflation, potential interest rate cuts, and global political uncertainty are all seen as supporting gold demand in the medium and long term.