Gold has traditionally been a preferred safe-haven asset, but recent global events have seen its value decline. According to Ming Pao, despite the ongoing conflict between the United States and Israel against Iran, gold prices have dropped approximately 15% over the past month. Analysts suggest that prior to the conflict, gold prices had already reached inflated levels, diminishing its effectiveness as a hedge.
The recent withdrawal of speculators has contributed to the price correction. Additionally, rising bond yields have attracted capital away from gold. Several central banks have also been selling portions of their gold reserves to combat inflation driven by soaring oil import prices. Industry experts believe that gold prices may only stabilize and recover once they return to fundamental levels.