Gold Prices Plummet to Seven-Week Low Amid Macro Pressures

Gold prices have taken a hit, plummeting to a seven-week low of $4,174 after breaking below the $4,200 level. This decline is not solely driven by one factor but rather a culmination of multiple technical pressures.

The current market situation has led to a synchronized shift in the macro environment, with front-end real yields surging to over two-year highs and the dollar strengthening. Additionally, gold ETF outflows continue to weigh on prices.

Goldman Sachs estimates that actual central bank gold purchases in July reached 44 tonnes, far exceeding the officially reported 23 tonnes. This suggests that long-term structural support for gold remains intact.