Selling Pressure Deepens in Gold: Expert Sets Level for Recovery

Gold prices have fallen to their lowest level in 13 months, drawing investors' attention. Ole Hansen, Head of Commodity Strategy at Saxo Bank, stated that rising bond yields and a strong dollar were effective in this decline. While increasing bond yields create an alternative cost to non-yielding gold, the strong dollar makes the commodity more expensive for investors using other currencies. Hansen noted that despite the selling pressure, demand from central banks and funds continues. This institutional demand indicates that the market has not been completely abandoned despite the price decline. The expert emphasized that for the short-term outlook to improve, the gold price must permanently surpass a significant threshold. Market players continue to closely monitor the course of bond yields and the dollar's strength. Hansen's assessment suggests that a recovery in gold can only be possible if it stabilizes above a certain price level. Not investment advice.