Sharp Decline in Gold Prices

Gold prices have recorded a significant decline in the global market. On Friday (May 1), the precious metal fell by more than 1 percent in a single day.

Rising crude oil prices have fueled concerns of renewed inflationary pressure worldwide. As a result, expectations are strengthening that central banks may step back from plans to cut interest rates.

In this context, investor demand for gold—considered a non-yielding asset—is weakening, directly impacting its price. Reuters reported the development.

According to the report, at 3:52 pm Bangladesh time on Friday, spot gold in the global market fell by 1.1 percent to $4,568.82 per ounce. At the same time, U.S. gold futures for June delivery also dropped by 1.1 percent to $4,579.70.

Analysts say short-term increases in oil prices negatively affect the gold market, as they add pressure on interest rates, which in turn weigh on gold prices.