Gold still shines in Asia thanks to ‘pent-up demand’ amid volatility
Investors are also looking to buy more silver despite the recent rush of funds towards the US dollar, analysts say
The outlook for gold remains strong over the long term, even as investors turned their focus to the US dollar in recent trading sessions, according to analysts.
Gold typically has an inverse correlation with the US dollar. Investors have shifted funds to the dollar after US President Donald Trump expressed optimism on Wednesday about a trade deal between Washington and Beijing following his phone conversation with his Chinese counterpart, Xi Jinping, and as the imminent threat of a US attack on Iran recedes.
The benchmark gold price was trading at US$4,864 per ounce on Friday afternoon, down from a high so far this year at US$5,600 on January 29. Spot silver price was at US$73 an ounce on Friday afternoon, down from a peak of US$91.60 on January 29.
Last year, gold prices jumped by 60 per cent to US$4,300 per ounce, after a 26 per cent rise in 2024, as the metal is typically seen as a haven amid global economic uncertainties. Silver prices surged by 147 per cent to US$70 an ounce last year.
The volatility in prices for the two metals reflects Trump’s trade policy flip-flops, particularly over tariffs, according to analysts.