News

After the gains of recent months, gold is undergoing a healthy correction, weighed down by the strengthening of the dollar and the steady interest rate policy announced by the Federal Reserve. Demand for physical gold in China has also slightly weakened, while India has reduced discounts due to festive-season purchases.

This downward window represents a predictable correction following the sharp increases of 2026 (+9% since the beginning of the year): a pause that many potential investors had been waiting for to enter the safe-haven market.

[Source: Ansa]

The safe-haven asset par excellence continues to decline, moving further away from the critical threshold of $5,000 per ounce. This marks the sixth consecutive day of losses, the longest negative streak since the end of 2024. Meanwhile, the Fed has revised inflation upward to +2.7%, above its theoretical 2% target.

[Source: Websim]

Gold has dropped below the psychological threshold of $5,000 per ounce, offering potential investors an excellent entry opportunity into the market. This downturn can be attributed to investors’ lack of confidence in an interest rate cut by the U.S. central bank. In fact, it is highly likely that the Federal Reserve will keep borrowing costs unchanged. Disruptions in the Strait of Hormuz also threaten persistent inflation, which could push central banks to maintain a more hawkish stance on monetary policy.

[Source: Borsa Italiana]