✨ $XAUT ✨ $PAXG 🚨 OR À LA BAISSE SOUS PRESSION : POURQUOI « L’ACTIF REFUGE » CHUTE-T-IL ?
The market started the day with a piece of news that has drawn a lot of attention: the price of gold (#GoldFalls ) has recorded significant declines over the past sessions, trading below $4,100 per ounce. For those who see gold as the “main safe-haven asset,” this may seem confusing, but there is a clear explanation linked to the current geopolitical situation.
Even though gold traditionally rises during conflicts, we are seeing a different reaction right now due to the crisis in the Strait of Hormuz. The escalation of attacks and tensions between the United States and Iran have sent oil prices soaring. This, in turn, increases fears that inflation will stay high for longer, forcing the Federal Reserve (Fed) to consider further rate hikes. This is where the key factor comes in: gold pays no interest. So when rates rise, investors prefer to move their money toward bonds or other income-yielding assets, leaving the precious metal behind.
What does this mean for investors?
We’re dealing with a market where macroeconomic factors carry more weight than traditional fear. The strength of the US dollar and the possibility that rates remain high throughout the rest of the year are putting downward pressure on gold. For beginners, it’s important to understand that even so-called “safe-haven” assets can fall when the rules of the financial game—such as interest rates and inflation—change.
The big question now is whether gold will find solid support at current levels, or whether it will keep adjusting while the market awaits this week’s inflation data and Fed Chair Kevin Warsh’s testimony before Congress
this is the opportunity for accumulatton
The market started the day with a piece of news that has drawn a lot of attention: the price of gold (#GoldFalls ) has recorded significant declines over the past sessions, trading below $4,100 per ounce. For those who see gold as the “main safe-haven asset,” this may seem confusing, but there is a clear explanation linked to the current geopolitical situation.
Even though gold traditionally rises during conflicts, we are seeing a different reaction right now due to the crisis in the Strait of Hormuz. The escalation of attacks and tensions between the United States and Iran have sent oil prices soaring. This, in turn, increases fears that inflation will stay high for longer, forcing the Federal Reserve (Fed) to consider further rate hikes. This is where the key factor comes in: gold pays no interest. So when rates rise, investors prefer to move their money toward bonds or other income-yielding assets, leaving the precious metal behind.
What does this mean for investors?
We’re dealing with a market where macroeconomic factors carry more weight than traditional fear. The strength of the US dollar and the possibility that rates remain high throughout the rest of the year are putting downward pressure on gold. For beginners, it’s important to understand that even so-called “safe-haven” assets can fall when the rules of the financial game—such as interest rates and inflation—change.
The big question now is whether gold will find solid support at current levels, or whether it will keep adjusting while the market awaits this week’s inflation data and Fed Chair Kevin Warsh’s testimony before Congress
this is the opportunity for accumulatton