INSUBCONTINENT EXCLUSIVE:
Gold prices experienced a significant decline on Monday, reaching their lowest point in over a month
This drop reflects ongoing reactions to the rising value of the dollar and increasing Treasury yields, which have diminished investor
interest in the precious metal.The December gold contract fell by 2.86%, settling at $2,617.70 per troy ounce on the Comex, part of the New
York Mercantile Exchange (Nymex).This decline illustrates the negative correlation between gold and the strengthening dollar, which has been
have strengthened the dollar, diverting investors from gold, traditionally viewed as a safe haven
Gule suggested that gold may continue to face downward pressure as market dynamics evolve.TD Securities echoed this sentiment, stating that
the reversal in gold prices indicates strong demand for U.S
dollars and a reduced likelihood of an overly accommodative stance from the Federal Reserve (Fed).Gold Prices Hit One-Month Low Amid Strong
Dollar and Treasury Yields
(Photo Internet reproduction)The investment bank anticipates further corrections in gold prices, citing extreme positioning among macro
funds that historically leads to declines of 7-10%.Additionally, traders in Shanghai are shortening their gold investment horizons at the
fastest pace seen in years.Market participants are also closely monitoring inflation data, particularly the upcoming consumer price index
on Wednesday.Comments from Fed officials regarding monetary policy adjustments will further influence market sentiment
Higher interest rates aimed at curbing inflation typically reduce the appeal of non-yielding assets like gold.
