Why has gold dropped

Weakening physical demand Gold purchases by central banks serve as a staple for the market but BofA said there have been signs of "fading" demand. Gold's performance during the year increased reserve portfolios, leading some central banks to spot "an opportune time to obtain liquidity to support their struggling economies," during the pandemic, said WGC in outlining factors that led to the slowdown in gold purchases. Lackluster jewelry market Jewelry sales have been 'disappointing,' the firm said.

The pandemic exacerbated softness in the key Indian jewelry market and last year stoked drop in sales in China, BofA said. China is one of the world's largest markets for luxury goods. Aid workers in Syria say the regime misappropriates humanitarian aid. New initiative to empower Muslims in film after years of orientalism. Show people, places and other topics in this story Read articles related to this story See what's popular on TRT World. A picture is worth a thousand words.

Follow us on Instagram. TRT World on Youtube Subscribe to our Youtube channel for all latest in-depth, on the ground reporting from around the world. This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Learn more. In such a scenario, the opportunity cost of holding gold, a non-yielding asset, is higher as investors are foregoing interest that would be otherwise earned in yielding assets.

I wouldn't be surprised if we see another, at some point, 20 million ounces leaving the ETF and futures market," Schnider said. Skip Navigation. Key Points. Dominic Schnider, chief investment officer at UBS Global Wealth Management, predicts that real yields will "go less negative" and that means more downside for gold. After gangbuster debut, Rivian draws comparison to Tesla.

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