Gold Prices Stay Under Pressure as Central Banks Hold Rates Steady
Despite weaker sentiment, global gold demand, including over-the-counter investment, rose 2% year-on-year to 1,231 tonnes during the first quarter.
SEATTLE (Scrap Monster): Global financial markets remained cautious last week as major central banks, including the U.S. Federal Reserve, the European Central Bank, the Bank of England, and the Bank of Japan, kept interest rates unchanged amid persistent inflation concerns and geopolitical tensions in the Middle East.
Global equities ended the week mixed, while bond yields and crude oil prices moved higher. The U.S. dollar weakened slightly as investors monitored the escalating U.S.-Iran standoff and uncertainty surrounding the Strait of Hormuz, a critical global oil shipping route.
ALSO READ:
Gold price continues slide as US-Iran deal stalls
Gold Price Outlook: Bulls Fight for a Breakout Near $5,000
Gold prices stayed under pressure after failing to break above key technical resistance near US$4,829 per ounce. Rising U.S. Treasury yields, stronger-than-expected U.S. GDP data, and elevated Personal Consumption Expenditure (PCE) inflation reduced expectations for near-term Federal Reserve rate cuts, limiting investor demand for safe-haven assets.
Despite weaker sentiment, global gold demand, including over-the-counter investment, rose 2% year-on-year to 1,231 tonnes during the first quarter. Total market value surged 74% to a record US$193 billion, supported by strong investment flows and continued central bank purchases.
Analysts expect upcoming U.S. non-farm payroll data and Federal Reserve commentary to significantly influence gold and broader market trends.