Gold's Downtrend Continues, Facing a Bull-Bear Watershed

Gold continued its downtrend on the last trading day of August, with international spot gold plunging over 3%, marking the largest single-day decline since June 10. At one point, it fell below $4,400 per ounce. This adjustment is superficially attributed to hawkish signals from Federal Reserve Chairman Kevin Walsh, but the deeper reason lies in the expectation of a weaker dollar that had previously driven gold prices up, now facing resistance from higher interest rates and U.S. Treasury yields. The watershed for gold lies in whether U.S. economic data can support rate hike expectations, as well as the policy tug-of-war between the Federal Reserve and the Treasury Department. Rajiv DeMello, Global Macro Portfolio Manager at GAMA Asset Management, anticipates that gold may temporarily retreat to $4,200 to $4,300 per ounce, but as a long-term holder, he still chooses to maintain his gold holdings.

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