Gold slides amid global economic recovery
The better the global economic condition is, the lower gold prices fall. The precious metal, like other safe-haven assets, began losing its investment attractiveness amid rising business sentiment.
At the moment, despite the existing problems, the virus-induced crisis is settling down. Of course, it is too early to say that the pandemic is over, but the overall epidemiological situation has significantly improved. The global economy is recovering slowly but steadily. The economic revival is accompanied by the expected decline in the precious metals market. In the last two weeks, gold lost more than 4%. Thus, the price dropped to $1,770 per troy ounce reaching the levels logged in November 2020.
Investors have decided to sell off gold, not waiting for a further slump. Recently, total assets of exchange-traded funds declined by almost 40 tonnes. Most analysts believe that gold will continue losing in value during this year amid the mass vaccination program and higher rates of the US Fed. The coronavirus pandemic triggered a surge in gold prices. Last spring, the precious metal began actively gaining in value as a traditional safe-haven asset during any crisis. However, the trend has changed for the opposite one.