The price of gold falls on a stronger dollar and higher Treasury bond yields.

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The price of gold has been on a rollercoaster ride in recent days, bouncing back up to $2015 per ounce before falling back to $2000. Gold has been pressured by a stronger dollar and higher Treasury yields, making it less attractive for buyers using other currencies. However, the trend remains bullish, and gold is expected to reach a new record in the coming weeks.

Friday’s drop was a necessary correction in the market, as a too-unilateral rise is unhealthy. In addition, last week’s economic data indicated that the US economy is losing momentum, intensifying bets that the Fed’s next rate hike will be its last. This situation has led hedge funds and other leveraged speculators in Comex gold futures and options to cut their bullish bets for the first time in 5 weeks.

Gold-backed ETF trust funds had a mixed performance last week, with the SPDR Gold Trust (NYSEArca: GLD) seeing its outstanding shares reduced for 2 consecutive sessions to record the first weekly outflow in 5 weeks, while the iShares gold ETF (NYSEArca: IAU) saw net investor inflows achieve their 5th consecutive weekly gain.

Despite the volatility in the gold market, analysts remain optimistic about the future of the precious metal. The bullish trend of gold is driven by global economic uncertainty, geopolitical tensions, and inflation expectations. Additionally, the increasing demand for physical gold from consumers has been another significant factor in the rising price of gold. Although the price of gold has experienced some volatility in recent days, the bullish trend remains strong. Gold is expected to reach a new record in the coming weeks, driven by global economic uncertainty and inflation expectations.

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