New York, NY – Gold prices have reached their lowest level since March due to the persistent strength in the U.S. dollar and 10-year bond yields surpassing 4.5%. Analysts are predicting that the bearish momentum could push prices even lower, potentially dropping to the 2023 lows at $1,810 in the spot market. The current price for spot gold is $1,873.32 per ounce, down 1.43% for the day.

The decline in gold prices gained momentum after breaking below the August lows at $1,885. Analysts note that the selloff comes as the Federal Reserve signaled its intention to maintain a restrictive monetary policy, even as its tightening cycle comes to an end. This stance by the U.S. central bank has resulted in skyrocketing bond yields, reaching fresh 16-year highs, and a strengthening U.S. dollar not seen since November.

Market experts highlight the influence of the U.S. dollar and interest rates as key drivers of gold prices. The rising interest rates, reflective of the resilience of the U.S. economy, have diminished gold’s earlier strength, as the precious metal offers no interest-bearing benefits. As a result, many anticipated that the higher inflation would support gold, but the correlation between inflation and higher interest rates has weakened the value of gold.

While the near-term pressure on gold continues, some analysts maintain a long-term bullish outlook for the precious metal. They suggest that a decisive break below $1,800 an ounce is necessary for a fundamental change in the gold market. Rising energy prices and slower economic growth create a stagflationary environment, which could eventually push gold prices above $2,000 an ounce.

Investors are starting to take advantage of the current low gold prices, with some experts recommending buying since the precious metal is “on sale.” However, caution is still advised as gold prices may have room to move lower. It is essential to consider the long-term value in the marketplace and gradually build a position.

In conclusion, gold prices have been negatively impacted by the strength of the U.S. dollar, rising interest rates, and the Federal Reserve’s restrictive monetary policy. Analysts predict further downward movement in prices, with a potential target at the 2023 lows of $1,810. However, some experts remain optimistic about the long-term outlook for gold, citing factors such as rising energy prices and slower economic growth as potential drivers of higher prices.