Gold prices on the global market continue to drop this morning, as capital flows from gold to other investments. The precious metal shows no signs of stopping its decline.
The US economy seems to be heading towards a “soft landing” with the lowest unemployment rate in 54 years and a continuing fall in the consumer price index (CPI). Experts predict that the Federal Reserve will maintain high interest rates until Q1 2024 before gradually reducing them to support economic recovery.
Investors are withdrawing from gold and shifting their investments to profitable assets like bonds and stocks due to news of possible interest rate slowdowns. The yield on 10-year US government bonds has been steadily increasing since last week.