Condition of gold and silver in the global market

The fall in the prices of gold and silver in the international market on Friday seemed to have stopped and both the metals were seen trading with a slight increase. The market has got temporary relief from US President Donald Trump’s decision to once again extend the deadline for the agreement with Iran.

Gold rose 0.33% to $ 4,423 an ounce on Comex, compared to a decline of about 3% in the previous session. Whereas the price of silver is increasing by 0.29% and is trading at $ 68.13 per ounce.

Why did the decline stop?

Donald Trump has indicated that the action to target Iran’s energy sites has been postponed for 10 days. This has reduced the nervousness of investors to some extent, because the ongoing conflict for the last one month had increased uncertainty in the market.

Why are prices still under pressure?

However, the pressure on gold and silver is not completely over yet. There are many big reasons behind this-

• Fear of higher interest rates: The risk of inflation has increased due to rising energy prices, which could lead to central banks keeping interest rates high. This reduces the demand for non-interest bearing assets like gold and silver.




• Strong Dollar: The dollar index remains around 100 and has gained about 2.3% since the conflict began. A strong dollar makes commodities expensive, which weakens demand.




• Türkiye’s Gold Sale: bloomberg Türkiye’s central bank sold or swapped about 60 tons of gold in the first two weeks of the conflict, putting additional pressure on the market, according to the report.

Big shock in a month

Gold has fallen by about 17% since the conflict began in West Asia. Interestingly, during this period, instead of behaving like a traditional safe haven, gold appeared to move with the stock market and in the opposite direction to oil prices.