Why does gold shrink to force? Let's see.

📌 the main factor in the gold.

1) 🪙 predicts Fed monetary policy will be stronger

Markets are starting to price the appointment of a new Fed chairman who could have a "tougher" idea, resulting in

The dollar froze.

Yield U.S. bonds higher

→ Resulting in gold which does not allow interest to be sold because it has a higher opportunity cost

Simply explained: The harder the interest rate and the dollar, versus gold that gives no interest → Investors choose to hold assets, yielding instead of gold.

2) 📉 strong selling profit after soaring price

Gold rush + 20-30% in a single month (hit record level) → Profit-taking / selling profit

→ Causing the price of gold to be pressed down quickly

3) 📈 The buying force of risky assets has increased.

When stock market confidence rises (risk appetite increases), investors may move from gold to hold, stocks, or assets yield higher.

→ Reduce the buying force of "safe" assets such as gold.

4) 💵 hard dollar and high bond yields

Gold often falls as the dollar hardens, because the price of gold is USD → the price falls for investors using other genera.

Also, higher bond yields led people to move money to buy bonds instead of gold.

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