Gold prices dropped sharply this week, but gold remains a safe investment in the eyes of many analysts. After hitting a record high above $3,500 per ounce in April, spot gold now trades around $3,180. This nearly 10% decline marks the metal’s worst weekly performance since November.
Despite this drop, experts are not turning bearish. Many analysts believe gold has strong long-term support. The key phrase here is: gold remains a safe investment. Several factors continue to fuel this belief. Political tensions, central bank buying, and investor demand are all playing key roles.
Ricardo Evangelista, a senior analyst at ActivTrades, stressed the unpredictability of the market. However, he also noted that risks remain high. That said, it’s too early to say the price has peaked. Many experts agree with this cautious but positive outlook.
Nitesh Shah, a strategist at WisdomTree, highlighted rising demand from China. According to him, China’s investor interest is not slowing down. In fact, Chinese exchange-traded funds showed the biggest inflows since March 2022. This trend supports the view that gold remains a safe investment.
Furthermore, China’s central bank has added to its gold reserves for six straight months. This consistent buying signals confidence in gold. Meanwhile, data from the World Gold Council confirms a major global push into gold-backed ETFs.
Looking ahead, several trends point to rising prices. Analysts from UBS say the U.S. dollar may weaken soon. At the same time, real interest rates could drop. These conditions usually push gold prices higher. They also add more strength to the belief that gold remains a safe investment.
In conclusion, gold may have dropped recently, but the story is far from over. Strong global demand, economic uncertainty, and central bank actions continue to shape the outlook. Investors should stay alert, as gold’s next move could be upward again.
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