The gold rush is running out of steam as bullion prices continue their drop, with Wednesday’s 1.2% decline being the second fall in as many trading days. Spot gold currently trades around $2,280/oz – 5% below its May high – as investors switch to equities and cryptocurrencies on the back of changing economic winds.
3 Factors Weighing Gold Down
1️⃣ Risk-On Rally: S&P 500’s record highs draw capital from safe havens
2️⃣ Dollar Strength: Fed officials’ hawkish rhetoric supports USD, making gold more expensive for foreign buyers
3️⃣ Bond Yield Bump: 10-year Treasury yields over 4.3% make zero-yield gold less attractive
Technical Alert: The 50-day moving average ($2,265) is now key support. A break below may initiate algorithmic selling to $2,200.
What’s Next for Gold?
Short-Term (1-2 weeks): Further decline likely as CPI data may push rate-cut hopes back
Long-Term: Physical demand by central banks (particularly China/Turkey) may place floor on prices
Wild Card: Rising Middle East tensions may trigger sudden haven bids
