economy
Gold prices are steady after heavy sell-off
The spot gold price began to settle but remained subdued on Tuesday after a tumultuous start to the week, establishing a level around $4,370 per troy ounce.
TL;DR
- Gold prices rebounded but remained in bear market territory on Tuesday.
- A stronger U.S. dollar and higher Treasury yields are reducing gold's appeal.
- Spot gold is down 21% since its record high at the end of January.
- Market watchers attribute the decline to macro and positioning-driven factors, including safe-haven demand followed by profit-taking.
- Elevated Treasury yields reduce the appeal of non-interest-bearing bullion.
- Analysts suggest the sell-off is a natural correction after an extended rally fueled by geopolitical uncertainty.
- Industry watchers maintain a constructive long-term view on gold due to structural drivers.