Gold Price Declined Sharply

Gold prices have fallen to the lowest levels of the current year. The 12.8% decline in price is the lowest indicator since 2008.

Downward pressure on prices is primarily driven by the strict monetary policy of the U.S. Federal Reserve System. The strengthening of the dollar and expectations that interest rates could rise further by year-end have reduced demand for gold. In such an environment, gold becomes less attractive to investors, as under conditions of high interest rates, placing money in alternative assets is perceived as a more profitable option.

Expectations of sustained inflation also impact prices. High prices for energy resources and increased demand in the technology sector, particularly from the artificial intelligence industry for chips, create a risk of rising electronics costs.

Against the backdrop of gold's decline, other precious metals have also become cheaper. In June, silver prices fell by 24.2%, while platinum declined by nearly 19%. The current economic environment makes investing in precious metals less attractive.

Source: Investing.com