In an unexpected turn of events, the value of gold experienced a sudden decline due to the strengthening of both the US dollar and US Treasury yields.
This drop in multiple currencies propelled the USD to reach its highest point in three weeks. The USD's ascent is further bolstered by the Federal Reserve's cautious monetary policy, which still remains restrictive. There is speculation that interest rates may be raised once again by September.
To prioritize safety, US banks are maintaining strict lending conditions. Moreover, gold prices were also affected by a decrease in oil prices - as oil is closely correlated with this precious metal - and an increase in bond yields added additional pressure on gold's value.
This drop in multiple currencies propelled the USD to reach its highest point in three weeks. The USD's ascent is further bolstered by the Federal Reserve's cautious monetary policy, which still remains restrictive. There is speculation that interest rates may be raised once again by September.
To prioritize safety, US banks are maintaining strict lending conditions. Moreover, gold prices were also affected by a decrease in oil prices - as oil is closely correlated with this precious metal - and an increase in bond yields added additional pressure on gold's value.
