The dollar's strength and elevated real yields have made gold less competitive as a store of value. Investors have increasingly favored yielding assets, leading to a structural shift in portfolio allocations away from gold. Gold ETF holdings have declined steadily, reflecting this rotation.
What to Watch
- Further upside in real yields and the dollar could push gold lower.
- A sudden escalation of the airstrikes could drive a sharp rebound.
- Until one of these scenarios materializes, gold is likely to remain tethered near $4,080.
Sources: Source 1
