Gold prices fell for a second consecutive month in April as rising US bond yields and fading expectations for Federal Reserve interest-rate cuts prompted investors to take profits despite continued geopolitical tensions, according to the latest monthly market report from OPEC.
The producer group said gold prices declined 2.8% month-on-month in April to average $4,721 an ounce, though prices remained 46.7% higher than a year earlier.
OPEC said investor demand for traditional safe-haven assets weakened during the month as higher real interest rates and shifting expectations around US monetary policy pressured precious metals markets. The report said “profit-taking, rising bond yields, and delayed expectations of a US Federal Reserve rate cut weighed on gold prices.”
The decline came even as geopolitical tensions in the Middle East continued to support broader commodity markets and keep energy prices elevated.
OPEC’s precious metals index fell 2.7% in April, marking a second straight monthly decline across gold, silver and platinum. Silver prices dropped 2.6% while platinum slipped 0.9% during the month.
Still, the report suggested underlying demand for bullion remained resilient. OPEC noted that losses in gold were “limited by healthy safe haven demand” amid persistent geopolitical uncertainty and inflation concerns.
The report also pointed to broader investor caution across commodity markets. Combined money managers’ net positions across key commodities including crude oil, natural gas, gold and copper fell 13.1% in April from the previous month as traders reduced exposure amid heightened market volatility.
The pullback in gold comes as inflationary pressures remain elevated globally due in part to higher energy costs. OPEC said US headline inflation accelerated to 3.8% in April while Eurozone inflation rose to 3.1%.
Despite the recent correction, gold prices remain near historically elevated levels after a prolonged rally fueled by central bank buying, geopolitical risks and expectations of looser monetary policy earlier in the year.
