Gold broke the 4-day bearish streak, with gains of 1.8% – ‘Jump’ 3.7% for silver

Gold ended the four-day downtrend today, finding support for the US currency’s decline, with analysts pointing out at the same time that the outlook for yellow metal prices is unlikely to deteriorate soon.

Investors believe that the first rate hike in three years or so announced by the Federal Reserve yesterday is not a very negative “wind” for the precious metal in the short term, given the estimates for maintaining high inflation in the European Union and the United States for a long time. even the need for a “safe haven” due to the uncertainty caused by the war in Ukraine.

“Investor concerns that inflation will remain high even though the Fed has begun to tighten are likely to continue to support gold prices,” said Jeff Klearman, portfolio manager at GraniteShares, which offers the GraniteShares Gold Trust. BAR), adding that while real interest rates are rising, they remain negative, while also providing support for precious metal prices.

“In other words, the opportunity cost of owning gold remains negative, supporting gold prices,” Klearman told MarketWatch late Wednesday afternoon.

On Wednesday, the Fed announced that it was raising interest rates by 25 basis points to 0.25% -0.50%, while revealing that the increases will continue throughout the year and next.

“Although the announcement initially had a negative impact on gold prices, the picture has changed” as concerns are raised that growth is likely to be undermined before the Fed raises all interest rates and the real dollar and dollar normalize, “said Rob Haworth, chief strategist. analyst at US Bank Wealth Management.

“Markets continue to monitor the interaction of supportive factors and headwinds,” he said. low bond yields ”. Opposite winds include the strongest US dollar and the “continuing cyclical reopening and recovery from the coronavirus pandemic,” he added.

The dollar also slipped in the rise of the precious metal today, with the ICE US Dollar index falling by 0.8%, as the weakening of the American currency makes gold more attractive for holders of other currencies.

Thus, on Thursday, the April contract for gold added $ 34 or 1.8% and closed at $ 1,943.20 an ounce, after closing yesterday at the lowest level since February 28, according to FactSet.

The May contract for silver also gained, which strengthened by 91 cents or 3.7% and ended the session at $ 25,616 an ounce.

For the rest of the metals, copper for May delivery rose 2.2% to close at $ 4,702 a pound, the April contract for platinum rose 2.3% to close at $ 1,031.30 an ounce and palladium for June delivery was up “jump” 5.3% and ended the day at $ 2,492 an ounce.