You think of gold, you imagine some precious metal. And you find yourself with the price of another material at an all-time high. Here because.
It won’t be like bitcoin, the most desired cryptocurrency, but it will be the litmus test of these virtual currencies that have destabilized the markets quite a bit in recent years. But the gold goes up and down offers food for thought.
Only at the beginning of April its value was $2,265.73 per ouncea truly considerable increase, the result of that hypothesis of a rate cut promised by the Fed, political tensions and Chinese demand.
But when everyone was amazed at that +16% and a record never seen before, now the time comes back down to earth. No collapse, let’s be clear, but those reductions, of 0.46% and 0.36% for gold for delivery in June (Comex) have as a direct consequence a somewhat in-depth analysis of this phenomenon.
We are always talking about very high numbers for gold, never seen, but the beginning of this small decline could last over time. While some other precious metals are not only at historic highs, but have been maintaining high levels for years.
For three years in hype: here’s why
The upward trend of silver began in June 2021, but has always intensified in these three years the peg of 28.3 dollars per ounce is more, or new high since June 2021. Unlike gold, however, no drops. It’s been a slow but steady growth.
There are many causes, at least according to analysts: the most important is that in 2024 India’s silver imports they flew to the highest levels and at this rate the current year will go down in history. What makes this crescendo Rossinian is also the monetary policy given by the next cuts in the cost of money or the moves of the FED and the ECB, without forgetting its production deficit: if it produces less, its value inevitably grows.
Forecasts
Beyond this analysis, what is certainly striking is the continuation of its growth in value, thanks to the so-called golden crossing, that phase in which the moving average at 50 days manages to rise above the 200-period moving average.
And the short-term forecast is for a further rise in the price of silver. After the new flare-up, again according to analysts, the resistance to keep an eye on is that of $28.30 an ounce. If she were to fall, there would then be the one at $29 and then the psychological threshold of $30. But beware of taking everything for granted, it is a hypothesis that needs to be verified in the light of unforeseen events and unexpected developments.
