INSUBCONTINENT EXCLUSIVE:
Gold prices fell for the third consecutive session on Tuesday, November 12
The persistent strength of the dollar, coupled with rising Treasury yields, has placed significant pressure on the precious metal.The
December gold contract closed down 0.43%, settling at $2,606.30 per troy ounce on the Comex division of the New York Mercantile Exchange
presidential elections, commodities priced in dollars, including gold, have experienced a downturn.Market expectations now lean towards
fewer interest rate cuts and a potential resurgence of inflationary pressures driven by proposed tax and tariff policies from the incoming
administration.Daniela Sabin Hathorn from Capital.com notes that these factors are weighing heavily against gold
In the short term, investor sentiment towards gold has turned negative.Gold Prices Decline Amid Rising Treasury Yields and Strong Dollar
(Photo Internet reproduction)However, Hathorn emphasizes that selling gold remains feasible
Concerns about political and military conflicts, along with weakening consumer demand in China and Europe, are likely to sustain interest in
gold.As a result, it may remain viewed as a safe haven asset
The Trump administration may further strain international relations, potentially increasing demand for secure investments.Prior to the
elections, key drivers for gold included strong retail demand from China and purchases by central banks in BRIC nations.According to SP
Angel, central bank buying is expected to persist as countries diversify their foreign reserves over the coming years
This ongoing demand could provide some support for gold prices despite current market pressures.
