class=”sc-29f61514-0 icZBHN”>
This is the lowest level since March, that is, in the last six months. The silver price also fell further on Monday, hitting its lowest level since March at $21.54.
“A strengthening US dollar and rising bond yields are creating headwinds,” Commerzbank said in a commentary. Both developments can be explained especially by monetary policy in the USA: There, the US Federal Reserve is moving towards ending interest rate hikes.
However, further tightening cannot be ruled out. And senior central bankers regularly emphasize that key interest rates must remain high for longer to fight inflation.
Since precious metals such as gold and silver do not pay interest, they suffer losses during the rising phases of basic interest rates. The strong dollar, on the other hand, benefits from higher US interest rates and creates an additional burden for precious metals. Gold and silver are mostly traded in US currency.
If the dollar exchange rate rises, purchasing precious metals from other currency areas becomes more expensive for interested parties. This suppresses demand and pushes the price down. (SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
