🔴Jeopolitics Are Tensions at a Peak, Why Are Gold and Silver Falling?
Normally, we expect gold to rise during war. But today, the opposite is happening! Reasons: 1. The dollar index is at a one-month high – As the dollar strengthens, foreign investors are having trouble buying gold/silver. 2. Expectations for interest rates have changed – Rising oil prices are fueling inflation, and the Fed’s chance of not cutting rates in June has exceeded 60%. When interest rates stay high, gold, which doesn’t offer yields, loses its appeal. 3. Profit-taking + industrial demand – Especially silver, which is 55% industrial metal. When war disrupts supply chains, the industrial sector panics. Conclusion: Instead of a short-term ‘risk-off’ environment, the heavy pressure from ‘dollar + interest rates’ prevailed. But if the war prolongs, gold could soar again! #altın #Silver #gold #silver #XAUUSD #XAGUSD
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
🔴Jeopolitics Are Tensions at a Peak, Why Are Gold and Silver Falling?
Normally, we expect gold to rise during war. But today, the opposite is happening!
Reasons:
1. The dollar index is at a one-month high – As the dollar strengthens, foreign investors are having trouble buying gold/silver.
2. Expectations for interest rates have changed – Rising oil prices are fueling inflation, and the Fed’s chance of not cutting rates in June has exceeded 60%. When interest rates stay high, gold, which doesn’t offer yields, loses its appeal.
3. Profit-taking + industrial demand – Especially silver, which is 55% industrial metal. When war disrupts supply chains, the industrial sector panics.
Conclusion: Instead of a short-term ‘risk-off’ environment, the heavy pressure from ‘dollar + interest rates’ prevailed. But if the war prolongs, gold could soar again!
#altın #Silver #gold #silver #XAUUSD #XAGUSD