6 Reasons Why Gold Price Is Still Falling

On October 30, gold reached a one-year low near $3,870, a 31% decline from January’s $5,598 peak, before rebounding to around $4,136 as the dollar weakened after U.S. midterm elections. In September the Federal Reserve raised its rate range to 3.75–4.00%, then held it on October 28 without ruling out further increases; traders put roughly 78% odds on a December quarter-point rise. Higher Treasury yields, a firmer dollar, an oil-driven inflation shock, forced selling during a technology selloff, gold-backed exchange-traded fund outflows, and weaker Chinese jewelry demand also weighed on the metal. Central banks bought 321 tonnes in the third quarter, while global gold ETF holdings reached a record 4,256 tonnes.