50 per ounce. The price of gold has been relatively stable in recent weeks, with the yellow metal trading within a tight range. This stability is attributed to a confluence of factors, including the ongoing US-China trade tensions, geopolitical uncertainties, and the Federal Reserve’s monetary policy.

The Federal Reserve has been aggressively pursuing a policy of raising interest rates to combat inflation. This aggressive approach has led to a significant increase in the cost of borrowing money. As a result, the opportunity cost of holding a zero-yield bullion has risen. The opportunity cost of holding a zero-yield bullion is the potential return you could have earned by investing in a different asset, such as a bond or stock. When interest rates are high, the opportunity cost of holding a zero-yield bullion becomes higher because you are not earning any interest on your investment.