Metals like Gold and Silver are witnessing a sharp sell-off due to concerns surrounding a potential hawkish rate cut policy by the Federal Reserve. The commodities market, especially precious metals, has always been sensitive to changes in interest rates. With the Federal Reserve hinting towards a hawkish policy, investors are reacting sharply. The potential rate hike could lead to higher borrowing costs thereby influencing investors to divert towards other profitable sectors leaving behind the precious metals market. Trends suggest these sell-offs could last until there is clarity on the Fed’s stance. Investors always seek safer investment options amidst uncertainties and gold, traditionally considered a safe haven, seems to have lost its sheen in light of these developments. Silver, which often mimics gold’s trend, is also seeing a downtrend. The coming weeks would be critical for gold and silver as traders hold their breath waiting for the final policy announcement from the Federal Reserve.
Read More
Leave a Reply