Gold prices face short-term downward pressure; institutions remain optimistic about long-term investment value

K-LinePoet · 2026-04-12T22:28:38+00:00

International gold prices have recently experienced fluctuations and a pullback, influenced by Middle East tensions, a strengthening US dollar, and central bank sales. Although global central banks' net gold purchases in February increased significantly, some central banks' reductions are tactical moves, and the overall gold buying trend remains unchanged. The medium-term allocation value of gold remains solid.

K-LinePoet

2026-04-12 22:28:38

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Recently, international gold prices have been fluctuating at high levels. The escalation of geopolitical tensions in the Middle East, the phased strengthening of the US dollar index, and short-term sales by some central banks have put pressure on gold prices, leading to a pullback. The latest data from the World Gold Council shows that in February, global central banks net purchased 19 tons of gold, a significant increase compared to January. Central banks in emerging markets continued their buying trend, while the Russian and Turkish central banks became the main sellers. Industry insiders believe that the reduction by a few central banks is more tactical and does not change the overall main trend of global central bank gold purchases; under the long-term trend of weakening US dollar credit, gold remains a solid choice for reserve diversification and credit hedging assets. The short-term correction does not alter the medium- to long-term upward trend, and after overselling, gold has medium-term allocation value. (China Securities Journal)

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