Gold is still under pressure in the financial markets. On Thursday morning, the price of the precious metal fell to its lowest level in 11 months. At its lowest point, London paid $1,685 for a troy ounce (about 31.1 grams). This is the lowest price since August 2021. The silver price also continued to fall, but was still above the two-year low of $18.15 a troy ounce last week.
Several factors have weighed on precious metals in recent months. These include, on the one hand, the sharp appreciation of the dollar, which makes the precious metals traded in the US currency more expensive for many investors due to the exchange rate and weighs on demand.
Rising capital market interest
On the other hand, rising capital market interest rates are making investors less interested in gold and silver. Unlike fixed income, precious metals do not generate regular income.
However, expert Craig Erlam of the trading house Oanda points out that the gold price has fallen recently, even if neither the US dollar nor market interest rates have risen. This is not a good sign for the precious metals, which are apparently very sensitive to setbacks at the moment. Gold is just not popular right now. Normally, the precious metal is considered a crisis protection and hedge against high inflation, which is currently the case in many places.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
