Precious metals markets continued to decline this week as gold fell 6.53 percent against the US dollar last month and silver fell 2.34 percent over the 30-day period. Globally, with high inflation and hawkish central banks, gold and silver prices struggled in 2022 and investors expected the opposite to happen.
Precious metals continue to accumulate in value.
The nominal US dollar price per troy ounce of gold (Au) and silver (Ag) fell between 0.18% (Au) and 0.27% (Ag) in the last 24 hours. Over the past 30 days, gold has traded down 6.531% against the US dollar, and silver has lost 2.34% against the greenback over the same period.
Precious metals losses are occurring as global inflation continues to worsen and the world economy faces turbulent markets. In addition, the US Federal Reserve raised the benchmark bank rate by 75 basis points (bps) last Wednesday, and the US dollar exchange rate index (DXY) rose to a 20-year high next Friday.
Bart Melek, head of global commodities strategy at TD Securities, told Kitco News on Friday that the recent Fed rate hike is a net negative for gold.
“We’ve seen a sharp increase in the markets’ expectations of what the federal funds rate will do next year. “It’s a big difference from a month ago, and it’s almost as aggressive from the feds,” Melek said. TD Securities’ Commodity Markets Strategist added:
Real rates are rising. It is negative for gold. High shipping costs and high opportunity costs will probably drive away capital.
Silver and Gold Daily Moving Averages Signal ‘Bearish’ Sign, Analyst Believes Gold Will ‘Bounce Back Next Year’
RM Capital Analytics strategist Rashad Hajiyev believes the price of gold should be higher. Last week, the analyst expected gold to bounce back against the US dollar.
“Gold should trade above $1,690 in 1-2 days if the recent sell-off is a breakout,” Hajiyev said. He tweeted. Last Tuesday. “Gold holdings around key support and GDX’s 1.75% rise in flat gold prices yesterday suggests the metal is on the verge of a big move.” Six days after Hajiyev’s tweet, gold hasn’t moved higher.
While the US artificially kept the price of gold at $35/oz, gold reserves fell from 20,000 tonnes to 8,000 as European governments converted their dollars into gold.
A similar situation is occurring as gold and silver move 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 They spoke According to her 61,300 followers on Twitter, her company expects gold prices to rise again next year. The adviser also expects the US central bank to cut rates in 2023.
“For 2023, the outlook for gold prices is more positive,” Jane detailed. “Not only do we expect the US dollar to weaken, but we also expect the Fed to start cutting rates in 2023. On top of that, we expect lower US real yields. As a result, gold prices may rise again next year or sooner.”
Sunday’s price analysis covering both gold and silver prices on schiffgold.com explains that the daily moving averages (DMAs) for both precious metals are showing signs of bearishness. The analysis mentions that silver is better than gold, but it contains precious metals.Real Resistance” at 22 Nominal USD per troy ounce.
“[For gold] It is unfortunate that 50 DMA ($1743) is below 200 DMA ($1831). But the market rarely moves in one direction without stopping,” the analyst wrote. “Expect a short-term swing. Until the current price ($1655) breaks at least the 50 DMA, the move cannot be trusted and probably the 50 DMA should break the 200 DMA to confirm a new breakout trend.”
What do you think about the upcoming gold and silver market show? Do you expect precious metals to go higher from here or is there more decline on the horizon? Let us know what you think in the comments section below.
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