Gold prices have recently dropped from 2450 to 2300, losing $50 in just a few days. This decline follows a major uptrend from early 2024 to mid-May when gold reached all-time highs. The surge was driven by geopolitical tensions and expectations of multiple rate cuts by the Fed, weakening the US dollar and boosting gold.

However, as the Fed's stance became more conservative and inflation decreased, expectations for rate cuts diminished, strengthening the US dollar and reducing gold's appeal. Additionally, easing geopolitical tensions lessened the need for gold as a safe-haven asset.

In the short term, gold might fall further to around 2280, but it's expected to recover over time. The three main reasons for gold's decline are reduced geopolitical tensions, the Fed's cautious approach to rate cuts, and a shift in investor interest back to the US dollar.

3 Reasons Why Gold Will Drop

Jun 26 2024

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