For the last six days, gold has been losing its luster, the precious metal that everyone cherishes.
As of right moment, an ounce of gold costs $1,835.40, a 0.8% decrease. It hasn’t been that low in about seven months! In case you were wondering, U.S. gold futures likewise decreased by 0.7% to $1,853.00.
It seems that many individuals think that interest rates in the US will remain high for a considerable amount of time. Many people have lost interest in gold as a result of this notion. In fact, according to some analysts, gold may perhaps soon drop below $1,800.
A wise expert named Jim Wyckoff claims that currency market patterns are rather solid and persistent. The U.S. currency is strengthening right now, which is bad news for gold. People using foreign currencies find gold to be less appealing when the dollar is strong.
Additionally, traders believe there is a 55% likelihood that the Federal Reserve, the country’s powerful financial institution, would maintain interest rates at their current levels this year. Gold doesn’t want to hear that.
Gold price had a successful run when its price surpassed $2,000 per ounce, but it has since dropped by more than 11%, or $230. Why? Well, since gold doesn’t pay interest as a savings account does, it became less enticing when U.S. Treasury rates increased significantly.
But more than just gold is experiencing the heat. Silver is also struggling, with an ounce losing 3.4% to $21.40. On the plus side, silver will likely continue to be in demand since metal is used in products like solar panels and electric cars.