According to ING strategists Warren Patterson and Ewa Manthey, gold prices have continued their downward trend, with spot prices trading near $4,500 per ounce as of yesterday. This decline marks the second consecutive session of losses for gold, attributed primarily to rising US Treasury yields and a stronger US Dollar, both of which are exerting pressure on non-yielding assets such as gold [1]. The strategists highlight that higher energy prices are fueling inflation concerns, which in turn suggest that interest rates will remain elevated for longer than previously anticipated. This environment has contributed to the ongoing weakness in gold prices [1].
Additionally, ETF holdings in gold have decreased by more than 2.2% since the onset of hostilities in the Persian Gulf, indicating reduced investor interest. Furthermore, the managed money net long position in COMEX gold is at its lowest level since February 2024, reflecting a shift in market sentiment away from gold [1]. ING notes that, at present, the gold market is paying less attention to lingering geopolitical risks and is instead more focused on the impact of rising Treasury yields [1].
No specific market reactions or analyst forecasts beyond these observations are provided in the source article.
CONCLUSION
Gold prices are under pressure due to rising US Treasury yields and a stronger US Dollar, with investor interest waning as evidenced by declining ETF holdings and speculative positions. The market's focus has shifted from geopolitical risks to macroeconomic factors, suggesting continued headwinds for gold in the near term.