PANews, March 28th - According to Bloomberg, bargain hunters have begun entering the gold market after the largest sell-off in years. By Thursday's close, gold prices had fallen 19% from their January closing peak, nearing the traditional 20% threshold that marks the start of a bear market. However, on Friday, buyers re-entered the market, pushing gold prices up by about 3%.

George Efstathopoulos, a fund manager at Fidelity International, stated that this pullback presents a buying opportunity once tensions in the Middle East subside. Inflation risks, fiscal pressures, and bond creditworthiness issues remain structurally positive factors for gold. Analysts also point out that a war with Iran could trigger central bank gold sales, or at least slow the pace of purchases. Daniel Galli, a commodities strategist at TD Securities, believes that given central banks have been cornerstone buyers in this bull market, large-scale direct sales would have a more direct impact on prices and a more damaging effect on market sentiment. However, for now, the broader trend is likely a gradual slowdown in the pace of central bank gold purchases, rather than a complete shift to selling.