World gold weakened because the dollar in the international market soared in the past few days in the context of the US Federal Reserve (Fed) maintaining tight monetary policy. Meanwhile, many Asian countries accelerated monetary easing to revive their economies.
The US Dollar Index hit a 9-week high overnight. Rising bond yields have increased the opportunity cost of holding zero-yield assets like gold, while the dollar's rally has taken away the precious metal's appeal to buyers, 2 headwinds. The reverse pushed gold to a 5-month low.
Good luck everyone .
The US Dollar Index hit a 9-week high overnight. Rising bond yields have increased the opportunity cost of holding zero-yield assets like gold, while the dollar's rally has taken away the precious metal's appeal to buyers, 2 headwinds. The reverse pushed gold to a 5-month low.
Good luck everyone .
Comment:
Technical traders are unlikely to offer much support until the downtrend is broken and until then, spot gold could be at risk of extending towards $1,865.
Comment:
"Gold's sharp decline began a month ago when the metal was prevented from consolidating above $80 an ounce, a key resistance level since May 2023."
