Kathmandu— According to the World Gold Council, gold prices could see a significant decline of around 37% from their January high if they fall below $3,857 per ounce. The report also notes that a strengthening Japanese yen might offer some support to gold prices amid ongoing market uncertainties.

Gold's Technical Support Levels

The World Gold Council has identified key technical levels for gold prices. Should the price break below $3,857 per ounce, the next major support level would be at $3,500 per ounce, marking a decline of approximately 37% from January's peak. This scenario aligns with previous significant downturns in the precious metal’s history.

Impact of Yen Strength

The report highlights that a stronger Japanese yen could provide support to gold prices, particularly if this trend continues following recent coordinated US-Japan intervention in currency markets. A weaker dollar and a stronger yen are seen as positive for gold due to their historical relationship.

Market Influences on Gold

Gold prices have been influenced by shifting interest rate expectations, with the US Federal Reserve maintaining rates unchanged in a 9-3 vote. Additionally, developments in the US-Iran conflict and oil price fluctuations continue to impact inflation concerns. As investors reassess market conditions, inflows into gold ETFs have moderated, and net long positions on COMEX have declined.

(With inputs from ANI)

Originally published on abcnews.com.np.