Due to geopolitical and macroeconomic uncertainties, Asian gold retail buyers are still keen to buy more precious metals, even at high stock prices.

At a precious metals conference held in Singapore this week, participants were bullish on the future of gold, believing that demand across the region remains strong. Since mid-February, gold prices have risen to a record high of 16%, breaking $2,300 an ounce.

"The change in sentiment has clearly led to new and higher prices, which is bringing people back in," said Rhona O'Connell, Market Analysis Manager at StoneX Financial Ltd., during the conference, "but it's not just a reaction to the price, it's a response to the original driving force behind the price - uncertainty and risk concepts."

This year, more than 40 countries are holding elections, making political risks a major theme of the Asia-Pacific metals conference.

Concerns about the worsening economic situation in major economies and the sharp drop in local currencies have also increased the attractiveness of gold, even though this makes gold more expensive for most buyers.

China remains the largest retail market in Asia and is challenging financial centers such as London and New York to become the most important force driving up prices. As a savings tool, gold has a long history in China, which is the largest consumer and major producer.

Ruth Crowell, CEO of the London Bullion Market Association, said that the Chinese market "may be the biggest driving force for price discovery at the moment" and that "the growth in demand for gold in Asia will continue."

Crowell said the influence of the LBMA in Asia is growing, with a significant increase in the number of new members including banks, traders and refineries.

In other parts of Asia, according to the World Gold Council, demand in India weakened from March to April, but recovered as jewelers reported higher sales during festival periods compared to the previous year.

Huynh Trung Khanh, Vice Chairman of the Vietnam Gold Trading Association, said that demand in small markets like Vietnam is strong, and consumption is expected to increase by 10% year-on-year in the first half of the year.

In Japan, even with the significant rise in gold prices caused by the depreciation of the yen, purchasing volume remains stable.

Bruce Ikemizu, Chief Director of the Japan Gold and Silver Market Association, said, "We see, of course, selling pressure, but there is more buying pressure, which has reached its historical high. This has never happened before."

Nikos Kavalis, Managing Director of Metals Focus Ltd., said, "The supply of scrap metal in the region is also tightening, which is not common in a high-priced environment, which clearly indicates that consumers are not willing to dispose of their gold."

However, in the long run, the bullish sentiment has reason to ease, as once this year's major election cycle is over, geopolitical prospects may tend to stabilize.

"In that case, the supportive factors will no longer exist unless the incoming administration is good enough to worry about," said O'Connell of StoneX.