Gold continues to make new lows: Downtrend is not over yet
The price of gold continues to decline and reached a level of 1892.56 USD/ounce due to the rising yields on US Treasury bonds, with the 10-year bond reaching its highest yield in 15 years at around 4.3%.
Furthermore, the recovery of the US dollar index is another factor contributing to the overall decrease in gold and silver sellers.
The minutes from the Federal Reserve's latest FOMC meeting, released on Wednesday afternoon, reminded traders and investors that the Fed remains committed to reducing inflation in the US.
The market interpreted these minutes as hawkish. Yields on US Treasury bonds increased further after their release, while the US dollar index reached its highest point in 9 weeks overnight. The price of gold dropped to its lowest level in 5 months.
Furthermore, the recovery of the US dollar index is another factor contributing to the overall decrease in gold and silver sellers.
The minutes from the Federal Reserve's latest FOMC meeting, released on Wednesday afternoon, reminded traders and investors that the Fed remains committed to reducing inflation in the US.
The market interpreted these minutes as hawkish. Yields on US Treasury bonds increased further after their release, while the US dollar index reached its highest point in 9 weeks overnight. The price of gold dropped to its lowest level in 5 months.
Kommentar:
Most members of the Fed's Federal Open Committee of Mayors (FOMC) worry the war on usage is far from over, the minutes of the newly released meeting show. They emphasized that the FOMC can continue to tighten monetary policy.
Kommentar:
Financial investors are gradually shifting their capital from safe-haven assets like gold towards investments in production and business sectors or other profitable assets. As a result, gold has lost its prominence in the market.
