Gold Today Vs. Silver in 2021 Suggests Metals Can Resume Lower
Gregor Horvat | Dec 05, 2023 02:04AM ET
US Dollar Index has been trading lower for the last few weeks as bets for potential rate cuts in 2024 are increasing, but FED’s Powell on Friday hinted that it may be too soon to look for that direction of lower rates. But they surely can cut if inflation continues down in months ahead as stated by some other Fed members. So economic data will be important in weeks and months ahead. We have the US NFP report on Friday with expectations of 175k in November from 150k in October, and the unemployment rate at 3.9%.
More importantly, gold soared at the open this week, with prices spiking to new highs, due to increasing geopolitical tensions in the Middle East, but most likely because of "over-crowded" trade bullish trade that rarely works. It appears that there is just "too much" optimism on metals because everyone believes that geopolitical tensions and potential rate cuts in 2024 will make gold much more attractive.
This spike in gold reminds me of silver back in 2021, when "over-crowded" bullish trade caused the opposite reaction. So on gold, can be very similar now, especially as a drop from ATH looks like an impulse that can be headed back to an important 2k area.
Gold today vs Silver 2020-2021
Gold intraday chart
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.