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Gold prices declined for the second straight session on Monday, halting a recent rally as stronger U.S. Treasury yields and a firmer dollar weighed on investor sentiment, while major Asian stock markets slipped into negative territory.
Spot gold traded lower in early Asian hours, dropping below $2,500 per ounce after briefly touching record highs last week. Analysts attribute the decline to profit-taking by traders and renewed strength in the U.S. dollar following signs that the Federal Reserve may keep interest rates elevated longer than expected.
In Tokyo, the Nikkei 225 edged down amid weakness in technology shares, while Hong Kong’s Hang Seng index fell over 1% as investors assessed China’s latest stimulus measures. Broader Asian sentiment remained cautious as rising oil prices and ongoing geopolitical tensions kept markets under pressure.
The recent dip in gold follows a powerful rally driven by safe-haven demand, geopolitical risks, and persistent inflation worries. With central banks still signaling caution, traders appear to be rebalancing their portfolios toward cash and bonds in anticipation of slower global growth.
Market experts believe the short-term correction could provide a buying opportunity if inflationary pressures return or global uncertainties deepen. However, sustained dollar strength could cap further upside for gold in the near term.
Economists are watching for upcoming U.S. inflation data and employment figures, which could offer fresh clues on the Fed’s next policy moves. Until then, both equity and commodity markets are expected to remain volatile.
Gold’s latest retreat highlights the fragile balance between optimism and caution in global markets. As investors weigh inflation trends and policy risks, the next few weeks could determine whether this pullback marks a pause—or the beginning of a broader market shift.
Spot gold traded lower in early Asian hours, dropping below $2,500 per ounce after briefly touching record highs last week. Analysts attribute the decline to profit-taking by traders and renewed strength in the U.S. dollar following signs that the Federal Reserve may keep interest rates elevated longer than expected.
In Tokyo, the Nikkei 225 edged down amid weakness in technology shares, while Hong Kong’s Hang Seng index fell over 1% as investors assessed China’s latest stimulus measures. Broader Asian sentiment remained cautious as rising oil prices and ongoing geopolitical tensions kept markets under pressure.
The recent dip in gold follows a powerful rally driven by safe-haven demand, geopolitical risks, and persistent inflation worries. With central banks still signaling caution, traders appear to be rebalancing their portfolios toward cash and bonds in anticipation of slower global growth.
Market experts believe the short-term correction could provide a buying opportunity if inflationary pressures return or global uncertainties deepen. However, sustained dollar strength could cap further upside for gold in the near term.
Economists are watching for upcoming U.S. inflation data and employment figures, which could offer fresh clues on the Fed’s next policy moves. Until then, both equity and commodity markets are expected to remain volatile.
Gold’s latest retreat highlights the fragile balance between optimism and caution in global markets. As investors weigh inflation trends and policy risks, the next few weeks could determine whether this pullback marks a pause—or the beginning of a broader market shift.