Why Is Gold Falling to $4,140 After Futures Fell 6% in September?
6 Articles
6 Articles
Gold prices fell by approximately 6 percent throughout September, reaching their lowest level in seven weeks. Investors' attention is now focused on upcoming economic data from the US and central bank purchases.
The global price of gold fell 0.3 percent to $4,131 in response to the strengthening dollar.
The global price of gold fell 0.3 percent to $4,131 in response to the strengthening dollar.
Why Is Gold Falling to $4,140 After Futures Fell 6% in September?
Why is gold falling is the search, and the usual answer is the wrong one. A war still underway should have been a bid for the metal people buy when they are frightened. It has been a bid for oil instead. Oil feeds inflation expectations, those expectations feed the long end of the Treasury market, and gold pays no coupon, so it has to beat that yield to stay in a portfolio. On Friday, Oct. 2, the yield won the day. Reuters reported spot gold at …
The sharp decline in gold prices following record highs has raised questions about where prices will stop. Rising US bond yields and uncertainty surrounding the Fed's interest rate policy are putting pressure on gold, while central bank purchases, led by China and Poland, are providing support. $4,000 is emerging as a critical threshold in the market, and levels that could signal the end of the decline are being closely watched.
(Dan Tri Newspaper) - Expectations of a rapid surge in gold prices have quickly faded as the precious metal reversed course and fell sharply, facing the risk of sliding back to the psychological threshold of $4,000 per ounce.
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