Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
CHIA SẺ
Thursday proved to be another rough day for precious metals. Gold was unable to build on the positive momentum of the prior two sessions, opting instead to fall back below $4,400 per ounce. Silver likewise failed to stay above $70 an ounce, falling by 4.6% yesterday when all was said and done. Gold investors have been waiting all month for safe-haven narratives to kick in but have instead been saddled with a 15% drawdown. This is by no means unprecedented. In times of crisis or uncertainty, institutions will often relinquish their most liquid positions first, which certainly include precious metals. A bigger driver however is the shift towards yield-bearing assets, which unfortunately do not include gold or silver. Interest rates on the dollar are now expected to rise this year, making the greenback a far more attractive prospect than it was just a few short weeks ago. Central banks rapidly started to increase their holdings of gold after the conflict in Ukraine, but such purchases have begun to slow down recently. Most notably, the central bank of the Republic of Turkey has sold 60 tonnes of gold so far this month, while the Russian central bank has also lightened its stores since the start of the year, albeit to a very minor extent.
Crude oil prices are once again in the three-figure range, with Brent Crude futures climbing to $106 per barrel and WTI rising to $93. Markets at large continue to fluctuate in line with the perceived likelihood of a resolution in Iran, which has so far remained elusive.
In the US, the S&P 500 and Nasdaq Composite indices closed at yearly lows yesterday, with the latter losing 2.4% during Thursday’s session. The Nasdaq has now lost over 10% from recent highs, placing the index in correction territory. One of the major contributors to the downward pressure was the selloff in Meta Platforms (META), which lost an impressive 8% yesterday. In a landmark trial, Meta, along with Google, was found liable for damages in a social media addiction lawsuit. The social media sphere in general will be feeling the pressure, with the verdict already being called a “big tobacco moment”, referring to a legal judgement whereby an industry is held accountable for knowingly causing public harm.
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