Analysts are growing more bearish on gold in the short term, citing rising bond yields and a stronger U.S. dollar as key pressures on the metal. Inflation worries and the possibility of a larger Federal Reserve rate hike are further weighing on gold's prospects.
Some analysts warn that weakening prices could trigger selling from exchange-traded fund (ETF) investors, adding to downward pressure. However, central-bank bullion purchases and steady ETF demand may help limit any significant correction.
The outlook remains mixed, with potential support from institutional buying balancing against concerns about yields, the dollar, and inflation. The combination of these factors is creating a cautious environment for gold investors.