Gold prices why down

Ken Griffin thinks the stock market is frothy and is still skeptical about crypto. Crypto and more: Barclays says these 10 stocks are set to outperform. On Friday, the Bureau of Labor Statistics said nonfarm payrolls increased by , in July , above the , new jobs forecast by Dow Jones. While gold has since recovered some losses, Dhar said it was "difficult to remain bullish on the precious metal," given the hawkish outlook for U. The Federal Reserve is expected to dial back monetary easing and slow its stimulus efforts as the economy recovers from the pandemic.

I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Part Of. Introduction to Gold. Investing in Gold. Trading Gold. Gold and Retirement. Commodities Gold. Table of Contents Expand. The Significance of Changes in the Gold Price. Understanding Gold Prices. Market Conditions. Key Takeaways While gold is often seen as a safe haven investment and store of value, it is also a produced commodity and subject to those same economic forces.

When gold miners produce an excess of gold relative to demand, the price will experience downward pressure due to the laws of economics. Speculators that accumulate or let go of gold in the market can create temporary imbalances that lead to rapid price changes. Article Sources. Investopedia requires writers to use primary sources to support their work. Palash Ghosh Former Staff. Send me a secure tip.

Palash Ghosh. The bank said the divergence between real rates -- which are adjusted for inflation -- and nominal rates has been influenced in part by concerns that central banks will start tightening monetary policy in the face of a global economic rebound. Rising rates can make bonds and other assets more attractive to investors than gold, which bears no interest.

A "lack of interest" from investors in buying gold has also been a pressure point for the market. Visit the Business section of Insider for more stories. Read the original article on Business Insider.