When the epidemic spread at the beginning of this year, gold was once sought after as a safe-haven asset. The price of gold rose from $65,438+$0,700 to $2,074. With the remarkable achievements in vaccine research and development in various regions of the world, everyone's risk aversion dissipated, and everyone's demand for safe haven for gold gradually declined, and the price of gold began to fall.

Second, the yield of American bonds.

Generally speaking, the yield of US bonds is negatively correlated with the price of gold, both of which are safe-haven assets. Because of the increase in the yield of American debt, people will naturally exchange their gold for American debt to get the maximum income, which also led to a further decline in the price of gold.

There are also many institutions that predict that after the dust settles in the US election, the uncertainty will be reduced, and the gold price may continue to drop in the future.

The prices of three commodities rose.

In fact, the trend of international gold price is negatively related to the price of bulk commodities, including some means of production such as oil and copper.

Judging from the recent trend of international oil prices and copper prices, these two commodities have been on the rise, and the increase is more obvious, exceeding the recent increase of international gold prices.

In this case, a large amount of funds have been transferred from the gold market to the commodity futures market, resulting in a decline in the demand for gold.

Fourth, the international economic recovery is better than expected.

Before August 2020, international gold rose greatly, because everyone was worried that the international economic situation was not optimistic, which led to an increase in risk aversion.

After entering the third quarter of this year, the economic situation of some major countries is better than expected. For example, the annual GDP growth rate of country M reaches 33. 1%. Although this growth rate has not increased compared with the same period of last year, it has changed greatly compared with the negative 32.9% in the second quarter.

At the same time, the domestic economy has obviously recovered in the last three quarters. In the third quarter of this year, GDP increased by 4.9%, and it is estimated that GDP in the fourth quarter may reach more than 5%. It is possible to maintain the growth rate of 1%-2% throughout the year.

In addition, the economic growth of some countries, including Southeast Asia, is also optimistic. For example, Vietnam's foreign trade surplus exports hit a record high. Generally speaking, although the epidemic situation in COVID-19 is still severe, people are optimistic about the future economy.

Therefore, investors temporarily give up gold and pursue other investment products with higher returns. Investors and friends need to pay attention to avoiding risks when investing.