What is causing the collapse of gold
The current context of greater risk aversion in the markets is conducive to gold. But far from taking advantage of the search for a safe haven, the precious metal is deflating to July lows. Read
Gold prices have fallen to a three-month low, below $4,000 per ounce, despite the current risk-averse market sentiment. The precious metal has declined by 14% in the past two months, from over $4,650 per ounce in late August. Analysts cite the rise in oil prices and concerns about China's economy as key factors contributing to the drop.
The price of oil has surged 26% in the same period, which could lead to higher interest rates and reduced demand for gold. Julius Baer suggests that Chinese investors may be selling gold to raise cash due to capital controls imposed by the Chinese government.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
