More price upside for gold and silver as USDX, U.S. bond yields decline

U.S. bond yields decline ( gold and silver )


Gold and silver prices have increased in the United States, partially due to the sharp decrease in the US dollar index. The sheer drop brought the US dollar index to its lowest point in 4 weeks. Since the earnings of the US Treasury are decreasing at present, experts have exhibited consequential confidence in the markets of gold and silver. As a result, their share prices have also risen lately. According to analysts, per ounce prices of gold and silver have increased by $9.80 and $0.207 (USD) respectively. 

The optimistic investors of the gold stock market, also called the bulls, are aiming to increase the prices of gold above $1900.00 an ounce (USD). To oppose them, the pessimistic investors, also called the bears, are intending to push the prices of gold below $1785.00 an ounce. Currently, the bears are at an advantage because the gold prices have been displaying a downtrend for 2.5 months. For silver, the bears are trying to push the prices below $20.42. They are supported by the fact that silver was also in a decline for the past two and half months. Bulls, however, aim to push the prices further above $23.00 an ounce and are optimistic because of the expected price gains this week. 

The morning trading session in New York saw that US stock indexes were lowered by more than 20% compared to the peaks they had touched previously. Because of this, stock market investors are now preferring to invest in gold and silver over the US dollar due to the high risk of inflation. The Federal Reserve Chairman, Mr. Powell, has addressed an economic summit in Las Vegas regarding these fiscal developments on 24th May.

In other news, China has also introduced an extensive economic policy to help recover the economy that was affected by Covid lockdowns. However, these plans have not been very fruitful in the open market yet.