Precious Metals Market Faces Selling Pressure
Global precious metals markets experienced significant volatility at the start of trading this week. Spot silver prices tumbled over 8%, reaching $26.79 per ounce. At the same time, gold prices also declined, briefly dipping below $1,870 per ounce.
Strong Dollar Weighs on Precious Metals
This decline in precious metal prices primarily stems from the continued strength of the US dollar. Recent robust US economic data has reinforced market expectations that the Federal Reserve's rate hike cycle might persist, placing downward pressure on dollar-denominated precious metals.
Market Sentiment Turns Cautious
- Investors are reassessing their precious metals allocation
- Some funds are shifting toward dollar-denominated assets
- Technical indicators suggest short-term weakness
Analysts note that precious metal prices may continue facing downward pressure in the near term, advising investors to maintain caution and monitor key support levels.