Gold Prices Hold Steady as Demand Slows in Asia and Tensions Ease in the Middle East

Gold prices have fallen nearly 2% last week, reaching $2,301 per ounce. The 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.

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, fewer economic data releases this week mean that gold prices may remain stable or slightly decline. The Bank of England’s interest rate decision is a key event that could impact gold prices negatively if they decide to raise rates. However, some experts foresee a decrease in gold prices in the short term due to falling demand in Asia while others remain confident in its stability as they see inflation, potential interest rate cuts and global political uncertainty as supporting factors for its demand over medium and long term period