Why is gold falling in price and is it worth buying now?

Everyone knows that gold is a major investment asset, and that it is also accumulated by central banks to maintain the stability of national currencies.

The precious metal is in such high demand that one can often encounter a shortage of gold bars.

For hundreds of years, we have become accustomed to the fact that the price of gold rises, and a purchased bar or precious coin can significantly increase in value in a few years.

But imagine our disappointment when, after a purchase, we discover that the price not only has not increased, but has even fallen significantly.

To see the full picture, we must first recall what led to the latest rise in prices.

Two years ago, the price of the precious metal began to rise at a record pace and surpassed the $2,000 mark per Troitsk ounce:

The COVID-19 pandemic was the reason for the record growth. Even before the economic crisis, investors began transferring their capital en masse to the safe haven of gold. Panic and buying ensued, leading to a shortage of gold bars.

As a result, the price of the precious metal reached its peak in August 2020, after which it began to gradually decline.

The main reason for the fall was that a significant amount of gold was bought during the rush, and after the movement slowed down, investors began selling gold en masse and investing the proceeds in more profitable assets.

The fact that the epidemiological situation began to stabilize at this time also played a significant role, meaning that many people needed money.

The decline is currently being driven by stock market speculators opening short positions and fueling rumors that the price of gold could fall to $1,600.

A rather paradoxical situation has currently arisen: while inflation rates are rising everywhere and global economies are declining, gold continues to fall in price.

This situation cannot continue for long; it is highly likely that the price of gold will not fall below $1,750, and will then return to growth before the beginning of 2022.

It's still better to buy gold than to sell it - https://time-forex.com/inv/gde-kupit-zoloto-vo-vremya-pandemii