100s of titles, one news app for just $10 a month.
Dive Deeper:
Now's The Time To Better Position Your Portfolio
Some of the best mutual funds and ETFs suffered the biggest declines since the financial crisis in 2008. Bright spots…
Gold prices today struggle, down ₹2,500 in 2 weeks
Gold rates: Growth worries and tightening expectations have caused a shift to the safety of US dollar and this has…
FPIs pull over ₹6,400 crore from Indian equity market in first week of May. What experts have to say
Foreign Portfolio Investors (FPIs) remained net sellers for seven months to April 2022, withdrawing a massive amount of over ₹1.65…
Stocks dive as fears about the economy intensify
The declines come a day after the Federal Reserve raised interest rates by the most in over two decades as…
One subscription that gives you access to news from hundreds of sites
Gold price continues to dip as dollar sustains at record high. Should you buy?
Gold prices slid for the third week in a row but managed to witness a respite in the latter part…
$57 billion wiped from Australian market, Wall Street rout as Dow plunges 1,000 points, Nasdaq loses 5pc
The ASX plunges by nearly $60 billion after Wall Street stocks plummet, as investors worry about the need for larger…
Get all your news in one place
Latest Business news:
As Melbourne's night-life recovers from COVID, a liquor licence freeze brought in 13 years ago is under the microscope
The state government says the pause on the granting of new liquor licences will remain in place until June 2023.
Read news from The Economist, FT, Bloomberg and more, with one subscription
Learn More
New Bank of Korea Chief Rhee Takes More Vocal Stance on Economy
New Bank of Korea Governor Rhee Chang-yong is turning out to be more outspoken than his predecessor as he shows…
Bitcoin Price May Crash to $8,000
Guggenheim Chief Investment Officer Scott Minerd thinks bitcoin could fall even lower.
Airbnb stops booking stays in China: source
San Francisco (AFP) - Home rental service Airbnb is shutting down its business in China as a pandemic lockdown shows…
Bitcoin Evangelists Remain Enthusiastic Despite Crypto Rout
The cryptocurrency market has lost over $1.6 trillion since November, but that hasn't tempered the passion of the bitcoin evangelists.
From analysis to good news, read the world’s best news in one place
Confidence stabilises after sharp drop
Consumers confidence perked up slightly in the past week, aided by the drop in the unemployment rate to 3.9 per…
European Central Bank chief signals possible July rate hike
The president of the European Central Bank has given the clearest sign yet that policymakers will aim to raise interest…

Gold and Silver Post-Ukraine: What Awaits The Precious Metals After The War?

By ValueWalk

Those seeking refuge in the gold and silver markets will continue betting on these assets until the uncertainty caused by the war in Ukraine dissipates. With investors fleeing to gold’s well-marketed safety this is what some experts say would happen if the Ukraine dust settles.

Although in recent days the price of gold futures has fallen —given the interest rate hike announced by the Federal Reserve— the truth is that the rise of the precious metal in recent months has been striking.

A Decline Is On The Cards

According to the Swiss Bank —Schweizerische Nationalbank (SWX:SNBN)— the price of gold —and that of silver— should fall in the medium and long term.

In a commentary, analyst Carsten Menke of Julius Baer Group said,  “Although inflation rates will remain high in the short term, which led the U.S. Federal Reserve to raise interest rates, we project a significant decline in the medium and long term, mainly due to the drop in the prices of the energy.”

In his view, price pressure is showing some early signs of peaking, so the demand for safe-haven assets will not remain as high for much longer. As he points out, gold is a very expensive insurance at current levels.

A Break

As reported by Reuters, gold prices rose more than 1% on Thursday, a day after Federal Reserve Chairman Jerome Powell allayed investor fears that the Central Bank could pursue highly aggressive interest rate hikes.

Ned Naylor-Leyland, manager of Jupiter AM, has warned that in the short term it is very likely that there will be “a break in the price of gold that will gain momentum.”

This has not yet happened “because the tightening monetary policies continue to dominate the mood of the market", but he believes that “the trigger may be that inflation rises above forecasts or that the market accepts that seven rate hikes in the U.S. are too many.”

“Gold arouses interest because there is concern about future purchasing power,” he explains Naylor-Leyland, and adds that “demand for physical gold is increasing because people want to hold physical gold as a hedge and central banks are increasingly buying more.”

Silver Market

Reuters reported that Spot silver had fallen by 0.1% to $22.60 per ounce —while platinum firmed 3% to $962.93, and palladium jumped 2.1% to $2,262.84.

So, Silver, according to Naylor-Leyland, is a tenth of the gold market, but its price is strongly correlated with that of gold.

“I think that when the price of gold breaks out, we will see a substantial increase in market share and that silver will also stand out,” he says.

In fact, he thinks that the silver rally will be "spectacular" because, unlike what happens with gold, while all the yellow metal that has been mined is available on the market, silver is not, since the industry consumes it and investors buy it in small quantities.

Following Gold

Naylor-Leyland concludes by stating that, although the silver market is generally more volatile than the gold market, in a broad sense, where gold goes, silver follows.

May started and silver has been in a three-week downtrend and seeing some continuation selling for the eighth straight session.

There was a negative movement during the month’s first ten days, dragging spot prices back to the $22.00 zone —or a nearly three-month low at the start of the session.

As the war in Ukraine rages on, both metals will be the subject of much scrutiny by experts and investors alike, who undoubtedly have seen it return to the fore amid the volatility of the markets.

What is inkl?
The world’s most important news, from 100+ trusted global sources, in one place.
Morning Edition
Your daily
news overview

Morning Edition ensures you start your day well informed.

No paywalls, no clickbait, no ads
Enjoy beautiful reading

Content is only half the story. The world's best news experience is free from distraction: ad-free, clickbait-free, and beautifully designed.

Expert Curation
The news you need to know

Stories are ranked by proprietary algorithms based on importance and curated by real news journalists to ensure that you receive the most important stories as they break.

Dive Deeper:
Now's The Time To Better Position Your Portfolio
Some of the best mutual funds and ETFs suffered the biggest declines since the financial crisis in 2008. Bright spots…
Gold prices today struggle, down ₹2,500 in 2 weeks
Gold rates: Growth worries and tightening expectations have caused a shift to the safety of US dollar and this has…
FPIs pull over ₹6,400 crore from Indian equity market in first week of May. What experts have to say
Foreign Portfolio Investors (FPIs) remained net sellers for seven months to April 2022, withdrawing a massive amount of over ₹1.65…
Stocks dive as fears about the economy intensify
The declines come a day after the Federal Reserve raised interest rates by the most in over two decades as…
One subscription that gives you access to news from hundreds of sites
Gold price continues to dip as dollar sustains at record high. Should you buy?
Gold prices slid for the third week in a row but managed to witness a respite in the latter part…
$57 billion wiped from Australian market, Wall Street rout as Dow plunges 1,000 points, Nasdaq loses 5pc
The ASX plunges by nearly $60 billion after Wall Street stocks plummet, as investors worry about the need for larger…
Get all your news in one place