“The problem for gold bulls is that while inflation remains contained around the world and there’s no driver there for people to buy gold, that strengthening U.S. dollar will be a key factor,” Michael McCarthy, chief market strategist at CMC Markets, told Bloomberg, adding that while there’s potential for trade wars to slow global growth, it’s not a crisis and isn’t likely to spur haven demand.
Related: Gold ETFs Retreat on Rising Rate Outlook
Money managers are still betting on further weakness in the gold market as many have increased net-short positions to a record for a fifth straight week. Analysts at Citigroup Global Markets argued that there isn’t a lot of demand for gold in a world where yields and equities are rising.
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