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When can we expect the gold rally to return?
The gold rush that started late last year looks exhausted. Since the U.S. operation in Iran, the precious metal has lost around 15% and continues to slide amid fears of another inflation wave driven by disruptions in the Strait of Hormuz. Although gold is traditionally seen as a safe-haven asset during times of uncertainty, if central banks resume tightening monetary policy, investors are likely to turn to more attractive alternatives, such as deposits and newly issued bonds. Gold pays neither dividends nor coupons, and a stronger dollar only adds further pressure. In that sense, it’s logical to assume that once ... (full story)