Gold holds strong despite headwinds!

Gold is heavily influenced by the US dollar now, and if it is signaled next week that there will be 3 interest rate cuts in 2024, this will lead to a new wave of gold buying.

As mentioned in the headline, gold is facing headwinds, including the strong US dollar and high bond yields. On Friday, gold reached record highs due to a weaker US dollar and lower bond yields, but now the tailwinds have turned, and inflation has stagnated, thus also reducing expectations for 3 interest rate cuts next year.

Considering the high levels of the US dollar and bond yields, it is surprising that the price of gold has remained high, but there is no doubt that the upward momentum has stalled. The Federal Open Market Committee will hold a meeting next week on interest rate cuts, and it is hard to believe that rates will decrease with the recent high inflation in the US. The tension between what the market says and what the Fed has said has also influenced commodities. The answer here will determine the price of gold!

It depends on what is said next week, but if three cuts are proposed, it will send gold to new heights.

 

High figures for silver!

There is usually a lot of resistance in the silver price just above $24.5 per ounce, but in Wednesday's trading, silver saw a slight increase. By the end of week 11, silver had reached $25.2 per ounce, with this, silver has moved in the right direction, and there is a greater chance that we can also reach $26, breaking up and surpassing the previous peaks. We have then experienced what is called the Golden Cross, which obviously affects the market afterward. This will likely weaken the US dollar. Silver is widely used in the industry, and we must follow as demand is still high. We also believe that interest rate cuts worldwide will happen soon, which will drive up the prices of precious metals.

Further advice: Follow the Fed meeting next week, as this will be crucial for the price of gold!