The financial world has seen an unexpected downturn in the price of gold. Many elements contribute to this surprising fall. First, there has been renewed optimism about global economic recovery which has led investors to shift away from the traditional safe-haven asset and towards riskier equities. Second, the rising interest rates make gold a less attractive investment option as it doesn’t pay interest. Furthermore, the surge in cryptocurrency, an alternate digital gold, has also diverted investors’ interest. All these circumstances combined have driven the steep sell-off in gold prices. The future perspective about gold’s price will depend on how these factors evolve, particularly the pace of global economic recovery and future monetary policy decisions. Read More
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