Global Gold Prices Hover Near One-Month Low Amid Shifting Market Sentiment

Tehran - BORNA - Spot gold edged down 0.1% to $4,593.04 per ounce, while U.S. gold futures saw a corresponding 0.1% decline, settling at $4,606.31. The yellow metal has faced sharp losses throughout the current week, primarily driven by safe-haven investors pivoting toward the U.S. Dollar. Furthermore, a recent spike in global oil prices has added a layer of volatility that has spooked broader financial markets.

In the wider precious metals market, results were mixed. Spot silver rose 0.7% to $73.61 per ounce, while platinum fell 0.3% to reach $1,937.75.

The latest report from the World Gold Council (WGC), released this Wednesday, indicated that total global demand for gold, including over-the-counter (OTC) transactions, reached a historic peak for a first quarter, rising 2% year-on-year to 1,230.9 tonnes. However, despite this yearly growth, total demand actually fell 6% compared to the previous quarter, signaling significant market turbulence during the first three months of the year.

This quarterly contraction follows a period of extreme volatility. According to Investing.com, the first quarter was defined by dramatic price swings where spot gold initially surged by nearly 30% early in the year, hitting an all-time record high of $5,595.46 per ounce on January 29, before entering its current cooling phase.

Analysts suggest that while long-term demand remains historically high, the immediate strength of the dollar and shifting energy costs continue to weigh heavily on gold's short-term performance.

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