On Wednesday, the gold price once approached $2800, but an analyst warned that the bullish trend in gold prices may be "limited" because the strength of US bond yields reminds investors of holding this non-yielding precious metal.opportunity costVery high.

Exinity's Chief Market Analyst Han Tan said, "The bullish case for the gold market has been reasonably supported. Historically, gold has been seen as a hedge against inflation and a safe haven, especially in the face of the upcoming risks of the usa election.Its price has soared to a historic high, closely related to market expectations of interest rate cuts by the Federal Reserve."He stated that a report from the World Gold Council shows that the "charm" of precious metals is also reflected in the recovery of inflows supporting gold exchange-traded funds (ETFs) and global demand hitting historical highs.

He stated that a report from the World Gold Council shows that the "charm" of precious metals is also reflected in the recovery of inflows supporting exchange-traded funds (ETFs) for gold, as well as global demand reaching a historical high.

A report released by the World Gold Council on Wednesday, includingOTC(OTC) investment, the total demand for gold increased by 5% year-on-year to 1313 tons, setting a historical new high for the third quarter of July-September. The report also states that global gold demand surpassed $100 billion for the first time in value.

Tan stated on Wednesday, "As the market becomes increasingly concerned about the upcoming risks, despite the recent rebound in the US dollar and Treasury yields, the gold price continues to break through historical highs."

Gold prices typically fall when the US dollar and US Treasury yields strengthen, but in recent weeks, they have risen together, breaking the previous negative correlation. A stronger US dollar is unfavorable for gold prices as gold is priced in dollars, making the cost of purchasing gold higher for users of other currencies. Meanwhile, rising US Treasury yields increase the opportunity cost of holding interest-free assets (such as gold).

Juan Carlos Artigas, Global Head of Research at the World Gold Council, said earlier this week in an interview, "US Treasury yields and the dollar continue to be important factors affecting gold. However, as a globally-held asset with dual attributes - serving as both a consumer good and an investment asset - other factors come into play, such as geopolitical risks and central bank demand."

However, market analyst Fawad Razaqzada from City Index and FOREX.com stated regarding gold, "From here on, the upside potential will be limited." He added, "The opportunity cost of holding yield-free assets like gold is increasing, as bond yields are soaring."

Razaqzada mentioned that despite the uncertainty surrounding the US election possibly providing some support, "Gold buyers may pause for now without new significant driving factors, waiting for a clearer correction."