Precious metals markets continued to stumble this week as the value of an ounce of gold fell 6.53% against the US dollar over the past month, while silver fell 2.34% in 30 days. Amid hyperinflation around the world and hawkish central banks, gold and silver prices struggled in 2022 and investors expected just the opposite.
Precious metals continue to hold the tank in terms of value
The face value of the US dollar per ounce of gold (Au) and silver (Ag) has decreased between 0.18% (Au) and 0.27% (Ag) in the past 24 hours. During the past 30 days, the price of gold fell 6.531% against the US dollar, and silver lost 2.34% against the dollar during the same time frame.
The losses that precious metals deal with occur at a time when global inflation is rampant and the global economy faces turbulent markets. Moreover, the US Federal Reserve raised its benchmark bank rate by 75 basis points last Wednesday, and the US Dollar Currency Index (DXY) surged to a 20-year high the following Friday.
Bart Melek, global head of commodity markets strategy at TD Securities, told Kitco News on Friday that the latest Fed rate hike was a net negative for gold.
We’ve seen big increases in markets’ estimates of what the federal funds rate will do over the next year. It’s a big difference from what it was a month ago, Melek said, and it’s in line with the Fed being more aggressive. Commodity market strategist TD Securities added:
Real rates are rising. This is negative for gold. The high cost of carrying and the high opportunity cost are likely to drive capital away.
Silver and gold daily moving averages indicate ‘bearish’ sentiment, analyst believes gold will ‘bounce back next year’
Rashad Hajiyev, strategic analyst at RM Capital Analytics, believes that the price of gold should be higher. The analyst expected a rebound last week after gold’s downtrend against the US dollar.
“Gold should trade above $1,690 within 1-2 days if the recent sell-off is a crash,” Hajiv said. chirp last Tuesday. “Gold holding around major support and GDX adding 1.75% yesterday to flat gold price indicates that the metal is on the cusp of a major move higher.” Six days after Hajiyev’s tweet, gold has not seen a significant rally.
While the United States kept the price of gold artificially low at $35 an ounce, gold reserves fell from 20,000 tons to 8,000 tons as European governments turned their dollars into gold.
The same is happening now with gold and silver moving to China and India as Comex & LBMA keeps prices artificially low. pic.twitter.com/wgr3zJTh5J
– Wall Street Silver (@WallStreetSilv) September 18 2022
Financial advisor Renuka Jain Tell And her 61,300 followers on Twitter confirmed that her company expects a rebound in the value of gold next year. The advisor also expects the US central bank to cut interest rates in 2023.
“For 2023, the outlook for gold prices is more positive,” Jane explained. “Not only do we expect the US dollar to weaken, but we also expect the Fed to start cutting interest rates in 2023. Moreover, we expect real yields to fall in the US. As a result, gold prices are likely to rebound next year or even sooner. .
Sunday’s price analysis covering gold and silver prices on schiffgold.com shows that the daily moving averages (DMAs) of both precious metals are showing bearish signals. Analysis indicates that silver has held up better than gold but the precious metal.”Real resistance” at 22 Nominal in US dollars per troy ounce.
“[For gold] From the downside, 50 DMA ($1743) is significantly lower than 200 DMA ($1831); However, the market rarely goes one-way without stopping,” the analyst wrote. Expect a short-term bounce. The bounce cannot be trusted until the current price (1,655) breaks at least the 50 DMA and most likely the 50 DMA needs to break the 200 DMA to confirm a new uptrend. .”
What do you think of the recent market performance for gold and silver? Do you anticipate a rally in precious metals from here or is there more pullback on the horizon? Tell us what you think in the comments section below.
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from San Jose News Bulletin https://sjnewsbulletin.com/td-securities-analyst-says-gold-selling-may-never-end-carrying-cost-and-opportunity-can-push-capital-away-markets-and-prices-bitcoin-news/
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