The pressure for this round of gold adjustments mainly comes from two aspects, namely the rise in real interest rates in the US to an 18-year high, and the geopolitical uncertainty caused by Trump's rejection of Iran's cease-fire proposal. The US 10-year real yield has risen to about 2.85%, a record high in 18 years, and the short-term interest rate market has now set that the Federal Reserve will raise interest rates three more times before April next year, 25 basis points each time. When cash suddenly provides extremely high positive real returns, the opportunity cost of holding zero-yield assets is hard to ignore. In terms of oil prices, we have already explained in the macro section that the actual resolution of the US-Iran issue may have to wait until after the midterm elections. Currently, gold is adjusting to absorb pressure from US debt and crude oil.

The pressure for this round of gold adjustments mainly comes from two aspects, namely the rise in real interest rates in the US to an 18-year high, and the geopolitical uncertainty caused by Trump's rejection of Iran's cease-fire proposal. The US 10-year real yield has risen to about 2.85%, a record high in 18 years, and the short-term interest rate market has now set that the Federal Reserve will raise interest rates three more times before April next year, 25 basis points each time. When cash suddenly provides extremely high positive real returns, the opportunity cost of holding zero-yield assets is hard to ignore. In terms of oil prices, we have already explained in the macro section that the actual resolution of the US-Iran issue may have to wait until after the midterm elections. Gold is currently adjusting to absorb pressure from US debt and crude oil.