Asia’s demand for precious metals has slowed, while tensions in the Middle East have eased, making it challenging for prices to increase in the short term. The global gold market saw a range of information last week, from production data to US employment reports. Despite some benefit when the Federal Reserve decided not to raise interest rates and left open the possibility of cutting them in the future, upward momentum stalled due to decreased demand in Asia and eased tensions in the Middle East.
Gold prices decreased by nearly 2% to $2,301 an ounce over the course of the week, despite reaching above $2,340 at times. Experts are cautious about short-term prospects, with a survey suggesting that some predict prices to decrease while others expect it to remain stagnant.
Factors such as inflation and unresolved geopolitical issues continue to support gold demand. However, falling demand in Asia has contributed to decreasing buying pressure. This was highlighted by Marc Chandler and Lukman Otunuga who believe that prices are showing signs of decreasing due to falling demand in Asia. The Chinese market closure during a 3-day holiday was one of many factors that contributed to this decrease.
Despite these short-term challenges, some experts like Adrian Day and Darin Newsom remain optimistic about the market in the medium and long term. They believe that factors such as inflation, potential interest rate cuts, and unresolved geopolitical issues continue to support gold demand.
