Gold Faces Pressure as Liquidity Demand Rises

From litefinance.org

For the past seven months, gold has shown consistent gains. However, the conflict in the Middle East has dealt a heavy blow to the precious metal. March may become the worst month in its history in value terms. At the same time, XAU/USD's decline of more than 20% from its record highs signals a move into bear territory. There is a key reason — gold's own strengths have turned against it. The global economy has entered this period of conflict in Iran with over $100 trillion in government debt and significantly higher central bank interest rates than after the pandemic. This limits governments' ability to increase ... (full story)