Gold on a Lossy Streak – Four Days Down
Gold’s been taking the “down” route for the fourth straight day, slipping below the $2,400‑per‑ounce “support band” in spot markets. It’s the kind of trend that makes investors think they might need a new favorite hobby: knitting?
Why the Yellow Metal’s Dips Continue
Even as the US stock market rolls its shoulders in a mild “we’re still alive” revival, Treasury yields are popping back up, and bond‑ETF managers keep pulling users’ money like a magician pulls rabbits from a hat. That’s a double whammy for our beloved metal:
- Bond ETFs pull in cash – nearly $550 million flowed in yesterday alone.
- Gold ETFs see outflows – the SPDR Gold Trust (GLD) lost a whopping $45 million in the same period.
The latest shock to economic expectations came from labor‑market data that threw “rates will stay high” into the dust. Analysts now whisper that a rate cut is “almost inevitable” in September. As bonds look more attractive with their new-yet‑still‑low “yield” bells, investors happily trade gold for bonds, leaving our precious metal to starve on the sidelines.
Bond Yield Lull Won’t Boost Gold
With bond yields on the dip, the market grows even more fixated on those fixed‑income goodies. The expectation of a stiff rate cut means yields could fall like a drunk elevator, drawing even more funds into the bond crowd. Add in a weaker appetite for equity risk, and the gold seller’s case grows stronger.
Middle Eastern Tensions? A Wild Card
Meanwhile, behind the curtain of geopolitical drama, Middle East powers are gearing up for a potential showdown. Iran’s missile fleet is swelling, drills are kicking off, and its allies might hop on board for a coordinated strike. If that happens, the Israeli defense system could be hit with a “deluge of attacks,” and the region could spiral into a firefight that, if any reasonable analysts agree, could keep gold’s price games alive.
What Investors Should Watch
While bond markets cheer on rising yields and investors jockey for position, the Middle East could still serve as the “red flag” that keeps gold in the safe‑haven spotlight. Until we see real action—or more data stating otherwise—gold might still have one last tunnel of support.
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