World Gold Council sees gold price decline as temporary correction

Andrew Naylor, head of the Middle East region at the World Gold Council, believes the current decline in gold prices is merely a temporary correction, not the start of a long-term downward trend.

Naylor explained that the fundamental factors supporting gold prices remain intact despite current pressures, noting that gold will continue to be an effective hedge against inflation in the long term, according to Asharq Business.

Among the pressures currently facing gold are declining demand in India due to increased taxes on gold imports, along with weakness in the Chinese market due to a slowdown in the real estate sector, in addition to other seasonal factors, he added.

These statements come amidst the decline in the price of the yellow metal, especially after prices fell below $4,000 an ounce yesterday for the first time since November.