Precious Metals Market Analysis

Suddenly, the US Dollar Index fell 6.70% over the last two weeks, marking the biggest decrease in the currency since 2020.

Usually, the Dollar and GOLD are negatively correlated. This means that the stronger the US-Dollar becomes, the lower Gold prices will be as many more investors will prefer liquid investments. Times of crises and the need to safeguard funds are the major exceptions to this.

Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?

US dollar gains ahead of the US CPI data on July 13th, pressing gold to new lows! 

On May 4, the US Federal Reserve revealed the federal funds rate for the next two months. Even though a 50 basis points hike was widely expected, the future is not so clear. Let’s figure it out bit by bit!

Apart from inflationary pressures, all other factors were serving as tailwinds to gold after reaching $2000 in August 2020. But inflation along with the slowing global economy are the factors that make gold shining brighter.

Gold is one of the most popular trading assets in the world, with a several age history and an unbelievably large market capitalization of $11 trillion.

Two issues will determine who will have the upper hand in 2022: gold or the US dollar…

XAU/USD looks weak. Will it keep falling? Let's find out!

Usually, the gold price is driven by political and economic uncertainty, like economic crises, election pressure, pandemic effects. But in the face of year-and-a-half lasting monetary stimulus program the price of the haven asset acts differently.