Troubled Night for Precious Metals – E24

The price of gold fell just after midnight on Monday by four percent. Silver fell more than five percent. However, the situation improved somewhat in the morning.

At eight o’clock, an ounce of gold costs $1,744, down more than one percent from Friday.

The “most significant number of the month” ahead of the weekend showed that more jobs were created in the US than expected, which could indicate that the US Federal Reserve will cut its support purchases sooner than otherwise.

– This certainly refers to austerity from the US Federal Reserve. The question is when, and now recent comments from Fed representatives suggest that even those who are very cautious believe that tightening will come early in the year, DNB Markets chief economist Kjersti Haugland told E24 on Friday.

Bouncing back after panic selling

When the central bank is no longer pressing the accelerator with the same force, it also relieves inflationary pressure. Gold is often one of the first things investors look for when they want a safe haven from inflation fears. Thus, the greater likelihood of a reduction in support purchases means that gold will be a less attractive investment, apart from others.

“What we’re seeing now is quite a bit of a drag from Friday, as investors may have come in a little bit late to the party panic seller,” says John Finney of Guardian Vaults. Bloomberg.

According to him, investors started selling gold and silver in droves after the job numbers were released.

Since the last peak last week, silver has fallen more than eight percent. Gold fell more than seven percent.

However, in the morning hours of Monday, both metals bounced back. Since the bottom, gold has risen 3.2 percent.

Silver recovered with a solid increase of 4.3 percent in the morning hours on Monday.