Somebody was forced to dump. But the technical picture is ugly. Just about every moving average is sloping down. You can cite all the arguments you like about fiat money, inflation, debt, suppressed interest rates, money printing, unsustainable spending, misleading government statistics.
I know them all. I agree with them all. The brutal truth is this: over the past year gold and silver have been outshone by pretty much every other asset in the world. I want the price to go up as much as you do. This might not be all over again. If it can, then I will start to feel optimistic again about this most analogue of assets in a digital age.
In the short term I expect us to rally. Let us hope this bounce is not of the more likely dead cat variety. Bitcoin hits a new record — and we all know what usually comes after fresh highs. The UK after the pandemic: the outlook for smaller companies. Gold mines are large and plentiful, but almost the entirety of what they produce is wasted. As technology improves, ore with lower concentrations of gold becomes more economically feasible to mine.
Discard all the billions of tons of worthless ground rock and it has been estimated that all the gold discovered thus far would fit in a cube that is 28 meters wide on every side. As a long-standing commodity , gold is not a security for the speculative. No one, or at least no one sane, buys physical gold in the hope that it will sextuple in value over the next year. Instead, buying gold is a defensive measure: a guard against inflation, currency devaluation, the failure of less tangible assets, and other woes.
Unlike many other commodities—light sweet crude oil , ethanol, cotton—precious metals differ in that, for the most part, they are not consumed. Fundamentally, the total supply of gold is more or less static. And prices did indeed correspondingly rise till late In fact, they doubled. Speculation is one reason for changes in gold prices. Investors speculate as to what governments and central banks are going to do and then act accordingly. Gold prices dropped when the Federal Reserve announced in it was wrapping up its controversial stimulus program after the financial crisis of Why sit on the sidelines with an inert shiny metal when other investors are getting at least temporarily rich?
The people shrewd and patient enough to have held onto their gold stashes throughout terrorism, war, prolonged recession s , and other assorted global upheaval are justifiably proud—and probably still not selling—particularly when you consider that worldwide economic and political distress are often the norm, not the exception.
However, it is not. That information reflects investor confidence, the probability of stock price and currency increases, and more. The Telegraph. Gold Price. Inflation Rate Experts point out that the US Fed is the key factor to determine future gold price trend as Covid worries are side-lined. Gold prices traded under pressure after the US Fed announced to hike key interest rates by halting the forward march of the prices. Due to a stronger-than-expected US jobs report, gold was down Rs in the morning and Rs on Friday evening.
Furthermore, the precious metal was heavily sold as bond yields reversed and greenback valuations rose. As a result of Richard Clarida's hawkish remarks, gold prices are struggling.
By hindustantimes. With agency inputs. Topics gold price today gold prices. Get our Daily News Capsule Subscribe. Thank you for subscribing to our Daily News Capsule newsletter.
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