In a surprising turn of events, last week saw a decline in global gold prices. The drop, which left many industry experts baffled, seems to be the result of a cluster of factors that converged among global markets.
The first factor to consider is the stringency of new economic policies implemented globally. Governments worldwide have been taking tangible steps towards steering their economies out of the pandemic-induced slump. As a result, investors are growing more risk-tolerant, directing their resources towards equities and bonds rather than traditionally safe-haven assets like gold.
Moreover, this trend is amplified by the strengthening of the U.S. dollar, which also contributed to the devaluation of gold. It is crucial for investors to watch the critical levels next week, which could potentially indicate the direction for gold prices in the near future. Read More
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