Demand for gold as the base asset has weakened compared to prior periods. Safe-haven buying has declined following reduced tensions in the Strait of Hormuz. Elevated import tariffs have cut gold inflows into India, a major global consumer. Ongoing US inflation has raised prospects of interest rate increases by year end, strengthening the dollar versus other currencies. A firmer dollar reduces gold affordability for emerging markets, notably large buyers India and China, lowering overall demand.
