Gold prices have been sliding for this month as traders sold their positions to cover losses during the slump in global equities. Currently, the strengthening U.S. dollar has put a crimp in gold prices since it makes the dollar-denominated gold bars more expensive for foreign investors. [Investors Find Refuge In U.S. Dollar, Treasury ETFs]
With U.S. dollars in high demand, “commodities, including precious metals, will find it difficult to rally,” Standard Bank analyst Marc Ground wrote in a note. “Eventually, as these concerns over a possible U.S. recession become more entrenched, we should see a return to the safe haven of gold and silver.”
iShares Gold Trust
For more information on precious metals, visit our precious metals category.
Max Chen contributed to this article.
