Gold prices fall for first time in three weeks amid weakening demand for safe haven assets

According to Bloomberg data, gold prices have fallen for the first time in three weeks due to a slight easing of geopolitical tensions in the Middle East, which has reduced demand for safe-haven assets. Additionally, the Federal Reserve Chairman's warning about inflation risks has diminished expectations of a policy easing by the US central bank. Gold is sensitive to interest rate changes and is the most attractive for investors when borrowing costs are at their lowest.

Gold experienced a decline of 0.5% at the start of this Friday, reaching approximately $3,342 per ounce.

Despite the current correction, the metal has shown an increase of more than 25% since the beginning of 2025. Currently, prices remain close to the April record high of around $3,430 per ounce.

Major banks maintain divergent forecasts. Goldman Sachs has reaffirmed its target price of $4,000 per ounce for the next year, while Citigroup anticipates a price decline below $3,000 per ounce by 2026.