Gold prices dropped by 0.5% on Wednesday, following a sharp rally spurred by Iran’s missile attacks on Tel Aviv. Despite the pullback, falling global interest rates continue to support gold’s allure as a non-yielding asset. Traders are eyeing this as a potential “buy-the-dip” opportunity, with gold trading in the $2,640s per ounce.
Volatility persists due to changing U.S. interest rate expectations, with Federal Reserve Chairman Jerome Powell’s recent comments tempering bets on a large rate cut. However, major banks like Goldman Sachs and UBS remain bullish, forecasting higher gold prices due to falling rates, strong central bank demand, and geopolitical risks.
Technically, gold remains in an uptrend, with analysts expecting a continuation of gains once the current consolidation period ends.


