Gold prices have recently declined below $2,700 per ounce, influenced by a strengthening U.S. dollar and rising Treasury yields. The U.S. dollar’s appreciation has made gold more expensive for holders of other currencies, reducing its appeal. Additionally, the anticipation of further interest rate cuts by the Federal Reserve has impacted gold’s attractiveness as a non-yielding asset.
Despite these factors, ongoing geopolitical tensions and uncertainties surrounding the U.S. presidential election have sustained some demand for gold as a safe-haven asset. Analysts suggest that while the current downward pressure may persist in the short term, gold’s long-term outlook remains positive, especially if economic uncertainties continue.
Investors are advised to monitor key economic indicators and central bank policies closely, as these will significantly influence gold’s trajectory in the coming months.
