Gold Price Under Pressure from Lower Global Demand

Gold is losing its shine as interest from China and India fades.

Global demand dropped 12% during the second-quarter compared to a year earlier, a report from the World Gold Council Thursday showed.

China and India, the world’s biggest gold buyers, were responsible for almost half the fall in demand to 914.9 tonnes.

Gold prices have been sliding in recent months as a stronger U.S. dollar and expectations that the Federal Reserve will hike interest rates for the first time in nearly a decade scares off investors. The metal current trades at $1,117 an ounce.

via CNN

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza