Demand for the metal is likely to remain weak, with central banks not expected to cut interest rates for some time due to high energy prices
3-MIN READ3-MIN ListenBiman MukherjiPublished: 5:34pm, 1 May 2026Updated: 5:37pm, 1 May 2026Asia’s gold rush is starting to lose some of its lustre, as surging oil prices due to the Iran war dampen rate-cut hopes that recently helped fuel one of the metal’s strongest rallies in years.A surge in energy costs has revived inflation concerns and made central banks less likely to cut rates, and this has made interest-bearing assets more attractive, according to analysts.
Gold prices fell by 12 per cent from US$5,247.90 per troy ounce on February 27 to US$4,620 on Friday morning.
The metal is typically seen as an attractive long-term investment and a safe-haven asset in times of economic and geopolitical uncertainties.
On January 28, gold prices reached an all-time high at US$$5,602. It rose 65 per cent from US$2,624 on January 2 last year to US$4,339.65 on December 31, according to KITCO, a precious metals information provider.
Oil prices remained elevated, with Brent crude futures for July rising by almost one per cent to US$111.41 per barrel on Friday. The benchmark has risen for four straight months, with its June contract that expired on Thursday surging to US$126.41 a barrel, the highest since March 2022.
