This massive sell-off is also hurting the precious metals sector, he said. We are in a sell-everything market and that is the biggest culprit in the gold price decline,” Clarke said.
In addition, the current rise in inflation is putting pressure on the price of gold as investors are reluctant to spend money due to high costs. “The rising US dollar is putting pressure on the price of gold, as the value of the precious metal is quoted in dollars. Both of these assets are inversely correlated, which puts pressure on the price.”
The expert expects inflation to remain high for an extended period, but these things are cyclical, he said. Sooner or later, according to him, the situation will change again, because the existing System in its current form is not sustainable.