Gold prices fell in Asia on Friday to US$4,620 a troy ounce as higher oil prices and expectations that central banks will keep interest rates elevated weighed on demand. [1]
Analysts said a surge in energy costs has revived inflation concerns and made interest-bearing assets more attractive, while gold demand in Asia is likely to stay weak because policymakers are not expected to cut rates for some time. [1]
The metal was down 12% from US$5,247.90 on Feb. 27, after touching an all-time high of US$5,602 on Jan. 28. It still rose 65% from US$2,624 on Jan. 2 last year to US$4,339.65 on Dec. 31, according to KITCO. [1]
Oil prices stayed firm too. Brent crude July futures rose almost 1% to US$111.41 a barrel on Friday, after the June Brent contract expired on Thursday at US$126.41 a barrel, the highest level since March 2022. [1]
The recent pullback follows a strong rally earlier in the year, when gold moved sharply higher before Friday's drop. [1]
