Part 8/11:
Despite the optimism, several downside risks threaten to punctuate the current rally. A stronger dollar or rising bond yields—stemming from expectations of monetary tightening—would generally put downward pressure on gold and silver. Political stability, easing geopolitical tensions, and a dovish stance from the Fed could also diminish safe-haven demand.
Market inflows could slow or reverse if investor sentiment shifts, and central banks’ demand might wane if their gold accumulation targets are met or if they reassess their reserve strategies. Additionally, physical demand for jewelry and industrial use has shown signs of stagnation or decline, especially as prices soar beyond traditional affordability levels nearby historical peaks.