Higher interest rate expectations have strengthened the US dollar and pushed US bond yields higher, both traditional headwinds for gold. At the same time, leveraged positions across futures markets have begun to unwind, amplifying the fall. Moreover, a key cushion for gold prices, central bank buying, has been absent this quarter amid a stronger dollar, exacerbating the fall, said Manish Bhandari, chief executive officer and portfolio manager at Vallum Capital.
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