Analyst: Risk appetite affects gold prices, and gold prices are expected to face further pressure in the future.

Jinse Finance reported on June 29 that gold prices fell during the early Asian trading session. Kieran Tompkins, an analyst at Capital Economics, said in a report that the deterioration of market risk appetite for AI-related assets has spread to commodities including gold, which was one of the most affected varieties last week. He noted that the "yellow metal," traditionally seen as a safe-haven asset, is increasingly behaving like a risk asset, and pointed out that in the fourth quarter of last year, its price fluctuated sharply due to extreme speculative activity. He also said that the precious metal performed quite poorly during the U.S.-Iran conflict. The economist expects gold prices to face further pressure as speculative enthusiasm gradually cools and stock markets weaken. He pointed out that the correlation between gold and the benchmark S&P 500 index is currently at its highest level in about 14 years.
GLDX-0.70%
PAXG-0.80%
SPYX0.77%
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