Gold is moving back into focus as investors begin to re-evaluate their positioning ahead of a potential pivot in US monetary policy. The market is increasingly pricing in a near-term interest rate cut from the Federal Reserve, and gold’s recent strength reflects how investors are preparing for that shift.
As confidence builds around the likelihood of a rate cut, the dollar has started to lose ground. That matters for gold, which is priced in dollars globally. When the dollar falls, gold becomes cheaper for international buyers, which tends to support prices. At the same time, lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.
Spot gold has edged higher, trading just above key psychological levels. There is now an increasing sense that central banks, institutional funds and long-term allocators are revisiting gold as a portfolio hedge for broader macro and currency risk.
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