Gold retraced its steps after reaching a recent high as it faces a stronger dollar.
While it could face some pressure over the short term, bullish factors could continue to support gold. Expectations of lower interest rates in the future could boost the asset over the longer term.
In addition, central banks, which have been accumulating gold at record levels over the past two years, continue to be strong buyers.
Poland’s central bank significantly intensified its gold reserves, acquiring 130 tons of bullion last year.
China has emerged as the primary driver of both consumer and central bank demand for gold.
Economic challenges and instability in the Chinese real estate sector have propelled investors towards safe-haven assets like gold, bolstering individuals’ gold investments in the country.
