This process developed a momentum of its own. The explanation is, however, not yet complete. Let us recall that the pressure on the gold price is taking place in the USA, and let us put ourselves in the central banker's or finance minister's position. Within the central banking system, US Treasury securities are the most important reserve funds. US Treasury securities therefore benefit most of all, if gold is no serious competitor for Treasury bills and bonds.
Gold is still a central bank reserve currency.
If a falling gold price leads central bankers to come to the conclusion that gold is a bad investment, they will invest in other assets, generally government securities, and especially US Treasuries. The American central bankers may have felt called upon to promote government securities in general as a reserve currency. We should, however, not overlook the fact that other central banks are free to decide whether they prefer the US dollar as a reserve currency or not. It is an open secret that European and Asian central banks are striving to grab a bigger piece of the 'reserve currency cake'. These are the two main reasons why the pressure on the gold price is being maintained.