Gold Prices Under Pressure, But Fundamentals Remain Strong

Gold prices have been under downward pressure since early morning on September 21, following a volatile trading week. Despite being pressured by rising US bond yields and expectations of continued tight monetary policy from the US Federal Reserve (Fed), gold has shown remarkable resilience.

The Fed's decision to raise interest rates by another 0.25 percentage points did not significantly impact gold prices, which remained above the important support zone. Analysts believe that in a volatile world economy, gold is seen as an asset benefiting from interest rate reductions and a tool to defend against financial and geopolitical risks.

Gold investment demand has been improving, with holdings in gold ETFs increasing to a 7-month high. This indicates that long-term investors remain interested in gold despite its recent price correction phase.