{"id":13833,"date":"2022-09-01T20:49:06","date_gmt":"2022-09-01T20:49:06","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/gold-and-silver-markets-shudder-analysts-say-firm-dollar-and-rate-hikes-may-drag-precious-metal-markets-lower-economics-bitcoin-news\/"},"modified":"2022-09-01T20:49:06","modified_gmt":"2022-09-01T20:49:06","slug":"gold-and-silver-markets-shudder-analysts-say-firm-dollar-and-rate-hikes-may-drag-precious-metal-markets-lower-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/gold-and-silver-markets-shudder-analysts-say-firm-dollar-and-rate-hikes-may-drag-precious-metal-markets-lower-economics-bitcoin-news\/","title":{"rendered":"Gold and Silver Markets Shudder, Analysts Say Firm Dollar and Rate Hikes May Drag Precious Metal Markets Lower \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Precious metal markets have shuddered during the last few weeks, as gold\u2019s price per ounce nears a six-week low hovering just under $1,700 per unit. Silver crashed through the $18 range slipping to $17.80 per ounce. While both gold and silver dipped between 0.85% to 0.89% against the U.S. dollar in 24 hours, platinum dropped 2.82% and palladium shed 4.18% against the USD during the last day.<\/strong><\/p>\n

Despite Scorching Global Inflation, Gold Hasn\u2019t Been a Safe Haven in 2022<\/h2>\n

While the entire world is suffering from red-hot inflation, many would assume that the world\u2019s precious metals would be a safe haven against the surging prices. That hasn\u2019t been the case in 2022, despite the U.S.<\/a> and the Eurozone inflation rate rising above 9%<\/a> this summer.<\/p>\n

\"Gold
30-day gold price on September 1, 2022.<\/figcaption><\/figure>\n

In 2022, an ounce of fine gold managed to reach a lifetime price high against the U.S. dollar at $2,070<\/a> per ounce. On the same day (March 8, 2022), an ounce of silver<\/a> tapped a 2022 high at $26.46 per ounce<\/a>.<\/p>\n

\"Gold
30-day silver price on September 1, 2022.<\/figcaption><\/figure>\n

Year-to-date, silver is down 23.14% as it was trading for 23.16 nominal U.S. dollars<\/a> per troy ounce on January 1, 2022. Since the high on March 8, silver is down 32% lower than the nominal U.S. dollars per troy ounce value. Gold\u2019s nominal U.S. dollar value per troy ounce on January 1, 2022, was $1,827.49 per ounce<\/a> and at today\u2019s $1,695.45 per ounce value, gold is down 7.22%.<\/p>\n

\"Gold
30-day platinum price on September 1, 2022.<\/figcaption><\/figure>\n

Furthermore, any investors who bought gold at the lifetime price high on March 8, lost roughly 18.09% in USD value since that day. Platinum, palladium, and rhodium values<\/a> have seen similar declines in value and even more volatility than gold and silver.<\/p>\n

Precious metals (PMs) have long played a key role in the global economy and traditionally, PMs like gold and silver have been seen as a hedge against inflation. However, this has not been the case in 2022, and the blame is being placed on a robust greenback and the Federal Reserve hiking interest rates<\/a>.<\/p>\n

Analysts Say Strong Dollar, Hawkish Fed Points to Lower Gold Prices, Dollar Index Taps 20-Year High<\/h2>\n

Przemyslaw Radomski, CEO of investment advisory firm Sunshine Profits told<\/a> Forbes at the end of June that a \u201cmore hawkish Fed, implying higher real interest rates, and a stronger U.S. dollar, both point to lower gold prices.\u201d The market strategist at dailyfx.com, Justin McQueen, says<\/a> \u201ca firmer USD and a renewed rally in global bond yields have dragged gold prices.\u201d<\/p>\n

The fxstreet.com analyst Dhwani Mehta explained<\/a> on Thursday that gold prices could drop even lower from here, if gold bears hold the market reigns. \u201cThe Technical Confluence Detector shows that the gold price is gathering strength for the next push lower, as bears aim for the pivot point one-day S2 at $1,700,\u201d Mehta wrote on September 1. The fxstreet.com analyst added:<\/p>\n

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If sellers find a strong foothold below the latter, a sharp sell-off towards the pivot point one-day S3 at $1,688 will be inevitable.<\/p>\n<\/blockquote>\n

David Meger, the director of metals trading at High Ridge Futures, blames<\/a> gold\u2019s poor performance on the statements<\/a> Federal Reserve chair Jerome Powell made last week at the Jackson Hole Symposium.<\/p>\n

\u201cThere is continued pressure on gold from Powell\u2019s last week comments that raised [the] expectation of a more aggressive Fed,\u201d Meger said. \u201cGold being a non-interest bearing asset will have more competition.\u201d<\/p>\n

Moreover, the U.S. Dollar Index tapped a 20-year high of 109.592<\/a> on Thursday, and the reasoning behind the robust greenback is being placed on an aggressive Fed, according to a Reuters report<\/a> published on September 1.<\/p>\n

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\nTags in this story
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Below $1700<\/a>, below $18<\/a>, David Meger<\/a>, Dhwani Mehta<\/a>, Downward Pressure<\/a>, economics<\/a>, Fed<\/a>, Federal Reserve<\/a>, gold<\/a>, gold dump<\/a>, gold price<\/a>, industrial use cases<\/a>, industrial value<\/a>, Jackson Hole<\/a>, jerome powell<\/a>, Justin McQueen<\/a>, Markets<\/a>, Precious Metals<\/a>, Precious metals (PMs)<\/a>, Przemyslaw Radomski<\/a>, rate hikes<\/a>, Safe haven<\/a>, silver<\/a>, Silver Futures<\/a>, Silver Price<\/a>, Silver Prices<\/a>, Technical Analysis<\/a>, the Silver Institute<\/a><\/div>\n<\/div>\n

What do you think about the precious metal market action in recent weeks? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Bullionvault, <\/em><\/p>\n

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