Easing of international tensions or disinflation cause gold prices to:

Question

Quizplus · Accepted Answer

When international tensions ease, investors tend to feel less uncertain and less risk-averse, which tend to reduce demand for safe-haven assets like gold. Similarly, when disinflation (a slowdown in the rate of inflation) occurs, investors tend to expect less economic uncertainty and reduced need for protection against inflation, which also reduces demand for gold. As a result, gold prices tend to decline in both scenarios.

Easing of International Tensions or Disinflation Cause Gold Prices To