The price of gold has dropped by 2%, but analysts remain optimistic about the prospects for gold.

Gold prices fell over 2% on Why do you need to use many ID cards to open a foreign exchange accountMonday as investors' reactions to the comprehensive tariffs imposed by the United States sparked concerns over a global economic recession. In response to market uncertainty, investors moved their funds towards safe-haven assets like the dollar, leading to a decline in gold. Spot gold dropped as much as 2.4%, hitting $2,963.19 per ounce, and touched nearly a four-week low of $2,955.89 during the session. U.S. futures gold closed down 2% at $2,973.60.

During periods of market unrest, the demand for cash and safe-haven currencies such as the Swiss franc and yen increases, causing gold prices to fall. Meanwhile, the dollar rose against other currencies, recovering from a six-month low reached last week. The stronger dollar makes gold more expensive for holders of other currencies.

Despite short-term pressures, analysts remain optimistic about gold's long-term prospects. The pressure in the gold market partially stems from liquidity concerns and margin calls by speculators. However, as the market anticipates that the Federal Reserve will cut interest rates by about 120 basis points by December this year, the likelihood of a rate cut increases, enhancing the appeal of non-yielding gold.

Spot silver rose 0.5% to $29.71 per ounce, recovering from nearly a seven-month low reached earlier. Spot platinum fell 1% to $907.09, and palladium fell 0.9% to $903.19.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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