Prof. Dr. Hani Fayez Yousef Hamad, an international expert in gold and precious metals markets analysis, said that the decline in the price of gold in the global markets during the recent period is mainly due to the rise in sales and profits by investors and global investment funds, after the strong rise in the yellow metal in recent periods.
He explained that the financial markets are in a temporary rebalancing phase, where some investors resort to selling part of their gold holdings to take advantage of the gains made, which leads to increased supply in the market and thus pressure on prices downward.
He pointed out that the fundamental factors that support gold in the long term remain, especially the high levels of global debt, geopolitical tensions and inflation in major economies.
The big irony of the global financial system is that the US gold reserves cover only about 3% of total US public debt, reflecting the large gap between real assets and sovereign debt in the global economy.
He pointed out that the United States has nearly 8,000 tons of gold, the largest official reserves in the world, but the value of this reserve remains limited compared to the size of US debt, which exceeded 34 trillion dollars, which highlights the fragility of the monetary system based on banknotes not covered by real assets.
Dr. Faiz Hamad stressed that this financial equation will keep gold in its position as a safe and strategic haven for investors and countries, expecting the yellow metal to return to the path of growth in the medium and long term, especially in light of the continued uncertainty in the global economy.
He concluded by saying that gold is no longer just an investment commodity, but has become a strategic indicator that reflects the balances of the global economy and the level of confidence in the international financial system.
