The precious metals market continues its weakness this week as the value of gold per troy ounce fell 6.53% against the US dollar last month, while silver fell 2.34% over a 30-day period. Amid raging inflation and hawkish central banks around the world, gold and silver prices have struggled in 2022, with investors expecting the exact opposite to happen.
Precious metals continue to fall
The nominal US dollar value per troy ounce of gold (Au) and silver (Ag) has fallen between 0.18% (Au) and 0.27% (Ag) over the past 24 hours. Over the past 30 days, the price of gold has fallen 6.531% against the US dollar and silver has fallen 2.34% against the US dollar.
The losses precious metals have been dealing with come at a time when global inflation is rampant and the global economy is facing turbulent markets. In addition, the US Federal Reserve raised its benchmark interest rate for banks by 75 basis points (bps) last Wednesday, and the US Dollar Currency Index (DXY) surged to his 20-year high next Friday.
Burt Melek, global head of commodities markets strategy at TD Securities, told Kitco News on Friday that the recent Fed rate hike is a net negative for gold.
“Market estimates of what the federal funds rate will do over the next year have risen significantly. That’s a pretty big difference from a month ago, and is consistent with a more aggressive Fed. ‘ said Melek. Commodity Market Strategist at TD Securities added:
Real interest rates are rising. It’s negative for gold. High cost of carry and high opportunity cost will likely keep capital away.
Silver and gold daily moving averages show ‘bearish’ sentiment, analysts believe gold will ‘recover next year’
Rashad Hajiyev, strategist at RM Capital Analytics, believes gold should go higher. Last week, analysts expected a rebound following gold’s downward trend against the US dollar.
“Gold should trade above $1,690 within a day or two if the recent sell-off breaks down,” Hajiyev said. murmured Tuesday of last week. “Gold holding key support and the GDX flat 1.75% gain in gold price yesterday suggests gold is on the cusp of a significant rally.” from Hajiyev’s tweet. Six days later, gold has not shown a significant rise.
The US held the gold price artificially low at $35 an ounce, but as European governments converted dollars into gold, gold reserves fell from 20,000 tonnes to 8,000 tonnes.
The same thing is happening now as gold and silver are moving to China and India as Comex and LBMA keep prices artificially low. pic.twitter.com/wgr3zJTh5J
— Wall Street Silver (@WallStreetSilv) September 18, 2022
Financial Advisor Renuka Jain Said Her 61,300 Twitter followers say her company expects gold to recover in value next year. Advisors also expect the US Central Bank to cut rates in her 2023.
“The outlook for the gold price in 2023 is more positive,” Jain elaborated. “Not only do we expect the US dollar to weaken, but we also expect the Fed to begin cutting rates in 2023. Additionally, we expect US real yields to fall. He is likely to recover.”
Sunday’s price analysis covering both gold and silver prices from schiffgold.com explains that daily moving averages (DMAs) for both precious metals show bearish signals. Analyzes show that silver has held up better than gold, but precious metals have “Real resistance at 22” Nominal U.S. dollars per troy ounce.
“[For gold] 50 DMA ($1743) is well below 200 DMA ($1831) is bearish. However, markets rarely go in one direction without pausing,” the analyst wrote. “Expect a short-term rally. A rally is unreliable until the current price ($1655) crosses at least the 50 DMA and to confirm a new bullish trend, the 50 DMA could rise above the 200 DMA. will be higher.”
What are your thoughts on the recent gold and silver market trends? Do you expect the precious metals to rise from here or drop further? Let us know what you think in the comments section below.
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TD Securities Analyst Says Gold Selling May Not Be Over — Carry and Opportunity Costs Could ‘Steal Capital’ Markets & Prices Bitcoin News
Source link TD Securities Analyst Says Gold Selling May Not Be Over — Carry and Opportunity Costs Could ‘Steal Capital’ Markets & Prices Bitcoin News