The price of gold dropped by more than 3% in August despite sky-high inflation, which raises questions about its property as an inflation hedge. Standard Chartered analyst Suki Cooper said in a note that gold could trend lower in the coming months. Additionally, silver prices saw an 11.6% decline in August.
Gold faces the brunt of bearish sentiments due to rising interest rates and yields. Commodity analysts at Credit Suisse lowered their gold price forecast for this year from $1,850 an ounce to $1,725 an ounce.
