Analysts have turned more bearish on gold over the near term. Inflation risks and the possibility of a steeper Federal Reserve rate increase are also weighing on the metal.
Gold does not generate income, so higher yields can make interest-bearing assets more attractive by comparison. EconoTimes has previously explained how rising U.S. yields can weigh on gold.
Central-bank buying and resilient ETF interest could cushion a decline in gold. If gold retreats, some ETF investors may exit, which could add to pressure on the metal.
