Gold prices have largely remained muted for about the last two months, after starting to fall in January this year, despite escalating global tensions, which should have ideally spurred demand. The US-China trade worries and geopolitical tensions in middle-east countries have so far not been able to catalyse investment demand in gold which is the major driver of rally in the yellow metal. Comex gold is trading in a tight range of $1280 to $1300 per ounce. There is a drop in investment demand of gold which saw a strong rally for the last five years. However, since January, there has been a decline in the ETF gold demand and the yellow metal has not been able to reach $1,300-mark. \u201cComex gold is trading in a tight range of $1280 to $1300 in spite of the geopolitical tensions in Gulf countries, trade war between the US and China. Other factors like US Federal Reserve won\u2019t be raising interest rates, all these factors should support the gold prices but that is not happening. However, there is a very limited downside to the gold prices because of the central banks buying,\u201d Jigar Trivedi, fundamental analyst - commodity, Anand Rathi Shares and Brokers, told Financial Express online. \u201cNotably, India and China are the biggest buyers of gold jewellery worldwide. \u00a0But the gold buying in China and India is somewhat subdued because of the trade tensions with the US and high domestic prices of gold in India,\u201d Trivedi added. However, market experts say that there is a very limited downside to the gold prices as the central banks of China,Turkey, Russia, Kazakhstan and India are buying gold to maintain their gold reserves. But the gold buying by central banks don\u2019t support rally much. \u201cWhenever there is political or economic turmoil, investors prefer safe haven but this time they are optimistic that the global tensions will get resolved. The muted demand in gold ETF is due to optimism among investors that the global tensions will get sorted in the long term. The investors are still investing in equity with these hopes,\u201d Jigar Trivedi said. The US is expected to delay imposition of tariffs on auto imports by six months which has also cooled off the nerves globally. Yesterday, the London Metal Exchange also ended in green even when the US retail sales posted a decline in April on the back cut in spending by the consumers. \u00a0The Labor Department also showed an unexpected fall in US industrial production in April.