📈 Gold Rebounds to $ 4,953 as Global Volatility Continues

Global gold prices advanced 0.64% on Friday, recovering from a near one-week low as investors await US inflation data. Despite recent fluctuations, the metal has surged 71.94% YoY, significantly impacting Sri Lanka's gem and jewellery sector and national reserves. • Global Market Performance • Spot Gold: US$ 4,953.18 per ounce (+0.64%). • Monthly Trend: Prices are up 7.03% over the last 30 days. • Recent Volatility: A 3% drop on Thursday saw prices briefly slip below the US$ 5,000 threshold. • Local Market Impact • Jewellery: High global rates have pressured the domestic jewellery industry, with 24-carat gold priced at approximately Rs. 55,160 per gram (provisional). • Sovereigns: A 24-carat sovereign stands at approx. Rs. 441,280, following a historic year where prices rose over 66%. • Industry Strain: Elevated costs have dampened domestic demand for gold ornaments, though the export of high-value gems remains a key foreign exchange earner. • Economic Outlook • Drivers: Stronger-than-expected US labor data suggests interest rates may remain higher for longer, providing a headwind for non-yielding assets. • Forecasts: Analysts suggest global prices may test the US$ 5,500 mark by late 2026 if geopolitical risks and central bank buying persist. _Note: Local prices are based on market averages and may vary by retailer._