In a surprising turn of events, the prices of gold and silver sharply fell on Monday, counteracting the big rally they saw in the previous week. This downward trend may seem puzzling to some, given the bullish state demonstrated last week.
Several factors played a key role in this unexpected downturn. First is the strengthening of the U.S. dollar. As the dollar strengthens, the price of gold usually moves in the opposite direction due to their inverse relationship. Second, the positive news concerning global economic recovery contributed to the diminishing investor interest in the safe-haven assets like gold and silver.
Moreover, the unprecedented optimism in equity markets globally after a smooth rollout of COVID-19 vaccines also diverted investors towards riskier assets. Experts believe that unless there’s another unpredictable geopolitical situation or financial instability, the trend may continue in the near term.
Investors should keep in mind that precious metals like gold and silver are volatile assets and need to be managed carefully in their investment portfolio. Read More
Leave a Reply