Gold prices have been falling in Asia as tensions in the Middle East ease and demand slows down. 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. Last week, gold prices fell nearly 2%, reaching $2,301 per ounce.
Experts are feeling pessimistic about the short-term outlook for gold prices, with a survey showing a split in opinions on where they may go next. Some analysts believe that falling demand in Asia will cause the price of gold to decrease, 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, there will be 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 due to low demand and global political uncertainty, others remain confident in its stability due to factors such as inflation and potential interest rate cuts.
