The price of Gold fell almost to the $2,000 level this week, its lowest level in more than a month. Commerzbank economists analyze the prospects for the yellow metal.
The correction of expectations of interest rate cuts puts pressure on the price of Gold and Silver
Better-than-expected US data on retail sales, industrial production and the housing market led to a notable reduction in Fed rate cut expectations. According to Fed Fund Futures, only a rate cut is now expected. rates in March with a probability slightly above 50%. Forecasts for interest rate cuts for the first half of the year were revised downwards by about 20 basis points throughout the week. As a result, US bond yields rose sharply and the dollar appreciated. All this hurt Gold.
The price of Silver came under even more pressure than Gold. The price of Silver fell to a two-month low of $22.4, pushing the Gold/Silver ratio back to almost 90.
As the correction in interest rate cut expectations continues, Gold and Silver are likely to continue to decline.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
