BITCOIN, SILVER AND GOLD PRICES, DAILY MARKET NEWS. AUG 2022.

Russia Shuts Down Nord Stream 1 Pipeline 

Aug. 31, 2022

As of 01:00 GMT Wednesday, Russian energy giant Gazprom suspended all gas flows to Europe via Nord Stream 1 due to maintenance.

Gazprom says that the pipeline will be offline until Saturday at 01:00 GMT. 

The EU has condemned the shutdown, stating Russia is using its energy supplies as a weapon against them. The Kremlin denies the accusations and says that the maintenance shutdown is only temporary “provided that no malfunctions are identified.”

The shutdown has many Europeans worried that the lack of energy supplies will continue to cripple the EU’s economy. Record high energy bills have outraged many Europeans, with some posting pictures of energy bills on social media.

Recently, the European Commission President Ursula von der Leyen announced that the EU will create an emergency plan for moderating energy markets as a way to control supply and pricing.

Today, gold prices fell 0.19% to $1,729.60 per ounce. Silver dipped 1.55% to $18.38 per ounce. Platinum increased 0.47% to $866.60 per ounce, while Palladium jumped 0.55% to $2,111.00 per ounce. Bitcoin spiked 1.52% to $20,112.40.

What next steps should the EU take to fix the bloc’s energy crisis?

Gazprom to Cut Energy Supplies to France

Aug. 30, 2022

Russia’s energy company Gazprom has announced that they will reduce the amount of natural gas deliveries to France starting August 30.

The reduction of gas will occur due to a disagreement between the two nation’s supply contracts. This is the second time Gazprom has reported gas reductions to France in two months.

In light of this news, Engie, a major French energy company, informed its customers that the company has the volume to supply its customers with its energy needs. Engie has also strategized on how to take corrective measures against significant energy reductions from Russia.

The Energy Regulatory Commission (CRE) stated that France’s strategic gas reserves are close to 91% full.

Today, gold prices fell 0.48% to $1,739.50 per ounce. Silver dropped 1.15% to $18.82 per ounce. Platinum decreased 2.08% to $866.70 per ounce, while Palladium dipped 2.86% to $2,125.50 per ounce. Bitcoin sunk 0.35% to $20,216.00.

What consequences do you think France will face after the drop in Russia’s energy supplies occurs?

Indian Rupee in Decline After Fed’s "Hawkish" Stance at Jackson Hole Conference

Aug. 29, 2022

The Indian rupee fell against the US dollar to a record low of 80.11. 

This reaction occurred after US Federal Reserve Chair Jerome Powell announced last week that the central bank would continue to aggressively tackle inflation rates. Powell also added that the Fed’s restrictive monetary policy will be in effect for a longer period than expected. 

The rupee has struggled to gain value against the dollar after hitting a previous all-time record low in July. 

Aside from the rupee devaluation, other Asian currencies have also fallen against the dollar. The Japanese yen dropped by 0.64%, the Thai baht sunk by 0.8%, the South Korean won decreased by 1.3%, and the Taiwan dollar and Chinese yuan both dipped by 0.6%.

Today, gold prices rose 0.01% to $1,749.30 per ounce. Silver dropped 0.69% to $19.07 per ounce. Platinum increased 0.81% to $887.20 per ounce, while Palladium jumped 0.39% to $2,171.00 per ounce. Bitcoin grew 3.56% to $20,253.90.

How do you think the Indian central bank will respond to the weakening value of the rupee?

Norway Rejects Gas Price Reduction Requested by EU Countries

Aug. 26, 2022

Norway has refused to force its energy companies to commit to long-term fixed-price gas contracts for the European market.

European countries are currently facing record-high energy prices as a result of a cut in Russian gas supplies. The idea was rejected after a member of Norway’s parliament suggested that the country should show solidarity with its European neighbors. 

Norway’s petroleum minister Terje Aasland said that energy companies already have an option of offering long-term fixed-price gas contracts, as long as terms are agreed upon with customers.

“I do not plan for a policy whereby petroleum firms on the Norwegian continental shelf are instructed to enter into fixed-price contracts for gas deliveries,” Aasland explained in a letter to Norway’s parliamentary members on Thursday.

He also noted that Norway will work toward providing a reliable and frequent supply of gas to customers. Economists continue to analyze the EU’s growing energy crisis and its global economic effects on inflation. Many investors are hedging their portfolios against inflation with precious metals.

Today, gold prices fell 0.67% to $1,756.20 per ounce. Silver dropped 0.67% to $19.37 per ounce. Platinum decreased 0.91% to $892.90 per ounce, while Palladium jumped 0.77% to $2,199.00 per ounce. Bitcoin sank 1.31% to $21,279.00.

What will Europe do to increase its energy supplies?

France’s Macron Declares “End of Abundance” and “Great Upheaval” Coming in Winter Months

Aug. 25, 2022

Europe is expected to face a tough winter, as the continent struggles to compensate for the loss of significant Russian energy supplies.

Recently, the EU’s Policy Chief Josep Borell announced that Europeans need to bear economic pain and deal with the consequences with “resolve”. 

France’s President Macron issued this statement on Wednesday: "What we are currently living through is a kind of major tipping point or a great upheaval … we are living the end of what could have seemed an era of abundance … the end of the abundance of products of technologies that seemed always available … the end of the abundance of land and materials including water."

Macron then added "This overview that I’m giving, the end of abundance, the end of insouciance, the end of assumptions – it’s ultimately a tipping point that we are going through that can lead our citizens to feel a lot of anxiety. Faced with this, we have a duty, duties, the first of which is to speak frankly and clearly without doom-mongering."

These comments were made in response to the effects on the EU’s population and economy due to the Ukrainian-Russian War.

After the EU placed sanctions on Russia as a punishment for invading Ukraine, Russia responded by significantly cutting down its energy supplies to the EU. As a result, the EU’s energy costs have skyrocketed, leading to record-high inflation.

Macron's opponents criticized his remarks. The secretary general of the CGT union, Philippe Martinez, said: "When we talk about the end of abundance, I think of the millions of unemployed, the millions of those in a precarious situation. For many French people, times are already hard, sacrifices have already been made." 

Today, gold prices rose 0.26% to $1,765.30 per ounce. Silver grew 0.26% to $19.37 per ounce. Platinum increased 0.69% to $899.20 per ounce, while Palladium jumped 4.33% to $2,177.50 per ounce. Bitcoin spiked 1.44% to $21,676.30.

How do you think France and the rest of the EU will fare during the winter months under a high inflationary environment and low energy supplies?

The National Bank of Ukraine Printing Money to Cover Deficits 

Aug. 24, 2022

Ukraine’s central bank is printing money to cover its budget deficits, putting the country at risk for hyperinflation.

The National Bank of Ukraine (NBU) created 30 billion hryvnia ($814 million) last week. On Wednesday, Ukrainian parliament MP Yaroslav Zheleznyak stated, “Over the past week (August 16-23), the NBU printed another 30 billion hryvnia. The total amount of NBU financing through budget printing reached 285 billion hryvnias ($7.7 billion),” 

The Ukrainian government revealed that the current budget deficit is about $7 billion a month, and tax revenue is insufficient to cover the gap in the country’s expenditures. The sale of government bonds is also falling short to make up for the budget shortfalls. Only a small portion ($1.4 billion out of $5 billion) of pledged foreign aid has arrived, but the remaining $3.6 billion is not enough to cover the monthly budget deficit.

Today, gold prices rose 0.13% to $1,759.30 per ounce. Silver grew 0.08% to $19.38 per ounce. Platinum decreased 0.91% to $891.50 per ounce, while Palladium jumped 2.99% to $2,071.00 per ounce. Bitcoin spiked 1.45% to $21,532.70.

What do you think the National Bank of Ukraine should do to help cover the nation’s budget deficit?

India to Ramp Up Silver Imports as Investment Demand Soars to Record High

Aug. 22, 2022

India, the world’s largest silver market, is set to import three times the amount of silver this year than a year ago. 

India’s silver imports are expected to reach 8,200 tons by the end of the year. Investors are betting that the price of silver will outperform gold in the coming years. In the first half of 2022, India imported 5,100 tons of silver - over 4,990 tons more than the previous year. Several investors believe silver has over-corrected itself and will rally soon.

India’s Industrial demand for precious metals has also jumped recently. The Indian government has offered steep incentives to international companies to manufacture solar panels and electronics (which use silver as a major component) within the country.

Today, gold prices fell 0.55% to $1,746.30 per ounce. Silver dipped 0.31% to $19.24 per ounce. Platinum decreased 2.23% to $893.70 per ounce, while Palladium sank 6.12% to $2,044.00 per ounce. Bitcoin dropped 1.45% to $21,199.00. Do you agree that silver prices will rebound in the future?

China Continues Gold Shopping Spree

Aug. 19, 2022

According to the Swiss Federal Customs Administration, China ordered more than 80 tons of gold from Switzerland in July.

The shipment is over twice the amount received in June and about eight times more than that the month before. The growing demand for gold in China is picking up again as the country’s economy opens back up after its implementation of Covid lockdowns. 

Also, China’s government has continued to dump US treasuries to the tune of $94 billion as of July. Analysts speculate that due to growing geopolitical concerns stemming from Nancy Pelosi’s visit to Taiwan, China will continue to work towards building a new separate financial system from the West. 

Selling US treasuries, while doubling down on its gold purchases seems like a strategy that is in line with Russia’s plan on creating a new BRICS currency based on gold. 

Today, gold prices fell 0.38% to $1,757.80 per ounce. Silver dipped 2.13% to $19.32 per ounce. Platinum decreased 1.76% to $908.60 per ounce, while Palladium sank 1.48% to $2,169.50 per ounce. Bitcoin dropped 7.58% to $21,431.80.

Why do you think China is dumping US treasuries and stocking up on gold?

Turkey’s Central Bank Shocks Market with Surprise Rate Cut 

Aug. 18, 2022

The Central Bank of the Republic of Turkey (CBRT) cut its primary policy rate from 14% to 13% despite its sky-high inflation rate of 80%. 

As a result, the Turkish lira fell 0.9% against the US dollar and is now trading at 18.13 per dollar. The rate cut surprised investors worldwide - as many central banks have increased rates instead of decreasing them among growing inflation.

Turkey’s blistering inflation rate has economically crippled its 84 million citizens, sending energy and food prices through the roof. The lira’s shrinking value is weakening the buying power of the average Turkish consumer.

Several geopolitical analysts believe that the rate cut stems from new diplomatic economic dealings between Turkish President Tayyip Erdogan and leaders from Russia and several Gulf countries. Erdogan’s rate cut seems to be a strategy to attract more foreign investments from the Middle East and Russia.

Today, gold prices rose 0.23% to $1,775.00 per ounce. Silver grew 0.08% to $20.05 per ounce. Platinum decreased 1.08% to $933.60 per ounce, while Palladium jumped 0.58% to $2,198.50 per ounce. Bitcoin spiked 0.54% to $23,467.20.

Do you think that Turkey’s interest rate cut will completely destroy the lira? Or will it attract a significant boost of foreign investments and help restore the economy to pre-pandemic highs?

World’s Largest Sovereign Wealth Fund Loses $174 Billion in 2022

Aug. 17, 2022

Norway’s sovereign wealth fund, worth $1.3 trillion and the largest in the world, lost $174 billion in the first half of 2022. 

As a result, the sovereign wealth fund registered a -14.4% return for the first six months of the year due to rising interest rates, high inflation, and the war in Europe - all contracting the world economy.

Also, the fund’s unlisted renewable energy infrastructure and fixed-income investments went down 13.3% and 9.3%, respectively. The sovereign fund’s return on equity investments dropped 17%.

Norway holds an extensive oil and gas reserve in the North Sea which is the bedrock of the sovereign wealth fund. The energy sector is helping the fund hedge against more losses. 

 

As interest rates continue to rise globally, the sovereign fund growth rates are unlikely to return to 2020 and 2021 highs.

Today, gold prices fell 0.51% to $1,775.80 per ounce. Silver dropped 1.69% to $20.07 per ounce. Platinum decreased 0.96% to $946.10 per ounce, while Palladium sunk 0.53% to $2,189.50 per ounce. Bitcoin dipped 1.94% to $23,394.70.

Do you think that Norway’s energy sector will provide enough support for its sovereign fund to weather the storm if the global economy continues to contract?

UK’s Food Inflation Rate Hits New Record High

Aug. 16, 2022

The United Kingdom’s food prices have jumped to their highest level in 14 years, with grocery inflation reaching 11.6% in one month alone. The highest price increases were for milk, poultry, and butter. 

At the current food inflation rate, households will pay around $640 extra a year, or $12.32 a week, in groceries. The high prices are forcing Britons to adjust their shopping behaviors as a way to save money.

Britons are shopping between retailers for the best-priced items, choosing budget brand goods instead of more expensive popular brands. As the UK and EU struggle with energy supplies, inflation is expected to increase over the next couple of months and into 2023. 

Investors in the UK are investing in precious metals as a way to protect their wealth against inflation.

Today, gold prices fell 0.13% to $1,788.00 per ounce. Silver dropped 0.44% to $20.44 per ounce. Platinum increased 0.96% to $962.00 per ounce, while Palladium rose 0.53% to $2,181.50 per ounce. Bitcoin dipped 1.46% to $23,746.90.

Do you think the UK will continue to experience record-high food inflation in the upcoming winter months?

Chinese Economic Data Below Expectations in July 

Aug. 15, 2022

The National Bureau of Statistics released Chinese economic data on Monday. The data reported that Chinese retail sales rose by 2.7% year-over-year (YoY) in July, lower than the Reuters forecast of 5%. Sales are also down from June’s 3.1% YoY growth.

Auto and precious metals jewelry sales grew by 9.7% and 22.1% YoY, respectively. 

Manufacturing jumped by 3.8%% YoY- also lower than Reuter's expected 4.6% figure. Real estate investments are currently concerning many investors about a growing real estate crisis.

China unexpectedly dropped interest rates to try and boost the local economy, as the real estate market continues to unravel. 

Today, gold prices fell 1.50% to $1,787.20 per ounce. Silver dropped 3.40% to $20.44 per ounce. Platinum decreased 3.95% to $944.00 per ounce, while Palladium sunk 3.36% to $2,181.50 per ounce. Bitcoin dipped 0.72% to $24,140.50.

Do you think the Chinese real estate bubble will burst, sending China’s economy into freefall?

Saudi Arabia and China Build Energy Partnership

Aug. 12, 2022

Arabian American Oil Company (Aramco) and the China Petroleum & Chemical Corporation (Sinopec) signed a multi-pronged memorandum of understanding (MoU) which entails that Saudi Arabia will be a strategic partner of China as a client state.

The MoU covers cooperation in oilfield services, procurement and construction, engineering, refining and petrochemical integration, upstream and downstream technologies, carbon capture, and hydrogen processes. 

China is currently positioning itself to exert power over the Middle East by leveraging Russia’s OPEC partnership. Russia and China are members of BRICS. This partnership is working on creating an alternative economic system to compete with the West. 

The BRICS new system will include the New Development Bank, Contingent Reserve Arrangement, BRICS payment system, and BRICS basket reserve currency.

China continues to compete against the US for global supremacy. To achieve that, China will need to secure influence in the Middle East, which is highly challenged by the US. The MoU will be China’s key to unlocking its energy supplies for decades to come.

Today, gold prices jumped 0.42% to $1,807.00 per ounce. Silver spiked 1.40% to $20.81 per ounce. Platinum increased 0.21% to $977.10 per ounce, while Palladium rose 1.04% to $2,303.00 per ounce. Bitcoin climbed 0.21% to $23,994.30.

Drop in Energy Prices Shrinks Wholesale Inflation Rate in July

Aug. 11, 2022

The producer price index (PPI), which calculates wholesale prices, slowed down in July. The PPI dropped 0.5% month-over-month (MoM), but still stands at 9.8% year-over-year (YoY). The decline was due to a significant 9% drop in energy prices and influenced 80% of the total drop in goods prices - which fell by 1.8%.

PPI increased by 0.2% in July MoM and 5.8% YoY, excluding energy, food, and trade services. The positive inflation report led many investors to speculate about the Federal Reserve’s next policy moves, with some anticipating that the fed will return to a “dovish”  monetary strategy.

Gold dipped 0.04% to $1,802.70 per ounce. Silver fell 0.70% to $20.71 per ounce. Platinum increased 1.48% to $977.90 per ounce, while Palladium jumped 1.10% to $2,310.00 per ounce. Bitcoin rose 2.26% to $24,489.40.

After a week of better-than-expected inflation data, do you believe that prices will continue along a downward trajectory? Or will prices increase as we head into the winter season?

Inflation Data Rose 8.5% in July, Below Expectations

Aug. 10, 2022

Prices increased year-over-year on a basket of goods and services by 8.5% in July, lower than the Dow Jones estimate of 8.7% raise YoY. However, the consumer price index (CPI) rose to 0.2% on a month-to-month (MoM) basis, slowing down the rate of inflation compared to June’s CPI rating and matching the DJ’s MoM estimate. 

Energy prices fell 4.6% MoM and gasoline dropped 7.7% MoM, helping to slow down the rate of inflation for July. 

Despite these hopeful signs,  gains of 1.1% MoM for food and 0.5% for shelter costs are still hurting consumers' budgets.

Core CPI (which excludes energy and food prices) rose 5.9% YoY and 0.3% MoM. The lower-than-expected CPI figures have elated some investors, leading to an early morning stock market rally. Some investors advise caution.

They believe that gas prices dropped due to a release of US strategic oil reserves. This may lead to a drop in supply over the next couple of months and a spike in prices.

Today, gold prices jumped 0.39% to $1,810.70 per ounce. Silver spiked 1.46% to $21.05 per ounce. Platinum increased 1.18% to $962.70 per ounce, while Palladium rose 1.21% to $2,287.50 per ounce. Bitcoin climbed 3.75% to $24,003.80.

Taiwan Reports that China is Preparing for Invasion

Aug. 9, 2022

On Tuesday, Taiwan’s Foreign Minister Joseph Wu claimed that Beijing is preparing for an invasion of the island under the guise of live military drills. 

Also, Wu says that the Chinese are practicing its invasion of Taiwan strategy playbook and are using fear tactics to intimidate the Taiwanese people.

Currently, the Chinese military is firing missiles around the territory of Taiwan. They are also conducting cyberattacks, economic embargos, and disinformation campaigns according to Wu.

The Chinese military began drills in response to Nancy Pelosi’s trip last week, which drew condemnation on behalf of the Chinese government. 

As a result of rising geopolitical concerns and upcoming inflation data, gold prices crossed over the $1,800 mark per ounce. Silver dropped 1.04% to $20.69 per ounce. Platinum decreased 0.64% to $955.50 per ounce, while Palladium rose 0.51% to $2,288.00 per ounce. Bitcoin fell 2.87% to $23,134.20.

Do you think that the Chinese live-fire exercises are a precursor to the invasion of Taiwan? Or is it just an intimidation tactic?

US Dollar Falls as Forex Investors Wait for Inflation Data

Aug. 8, 2022

The US dollar lost steam Monday morning as investors await Wednesday’s inflation report. The dollar index fell to 106.31, a 0.3% drop from Friday’s 106.930. 

Investors are now betting that the Fed has a 69% chance of raising rates by 75 basis points in September. Although inflation concerns plague Americans, the dollar has held up well against other currencies. This is due to the Fed’s “hawkish” monetary policy in 2022. 

Many leading currencies, like the yen and euro, struggle to gain value against the dollar. The Japanese central bank has been viewed as dovish in its approach to curbing inflation rates. The USD/JPY is currently at a two-month low, at 130.40.

Gold has reacted positively to a weaker dollar Monday morning. Gold prices jumped 0.48% to $1,795.50 per ounce. Silver jumped 2.91% to $20.72 per ounce. Platinum increased 0.65% to $963.40 per ounce, while Palladium rose 5.23% to $2,292.00 per ounce. Bitcoin climbed 4.22% to $24,156.20.

Nonfarm Payrolls Grew 528,000 in July, More than Expected

Aug. 5, 2022

The Bureau of Labor Statistics reported on Friday that nonfarm payrolls rose 528,000 in July, beating out the Dow Jones expected estimates of 258,000. The unemployment rate was recorded at 3.5% for the same period.

Wage growth also jumped, as average hourly earnings surged 0.5% month-over-month (MoM) and 5.2% year-over-year (YoY), also higher than estimates. As a result of the better-than-expected jobs report, it is expected that the Federal Reserve will move towards raising interest rates by 75 basis points in September. Alternatively, some economists believe that the current job figures are deceiving.

They highlighted the fact that the labor participation rate is a paltry 62.2% in June. Many economists and investors argue that labor participation highlights a greater issue within the economy. As the cost of living soars, many retirees will be forced back into the workforce. This is due to their fixed incomes being diminished by high inflation rates.

Today, gold prices fell 0.76% to $1,785.40 per ounce. Silver dropped 1.14% to $20.14 per ounce. Platinum increased 0.65% to $953.80 per ounce, while Palladium rose 3.49% to $2,189.00 per ounce. Bitcoin climbed 2.64% to $23,221.30.

Do you believe that the unemployment figures indicate that the economy is getting better? Or are labor participation rates a better indicator of a struggling economy?

US Misery Index Hits Highest Level in 11 Years

Aug. 4, 2022

The US economy currently faces a variety of issues, such as contracting GDP, increased layoffs, and high inflation. This economic problem is negatively affecting Americans, leading to the highest spike in the misery index in 11 years.

The misery index is a measure of economic distress felt by households. This is due to a rising cost of living amid unemployment fears.

The misery index is computed by combining the unemployment rate with the inflation rate.

The misery index released for June rose by 12.5%, higher than the 2008 recession when the index hit 11.4%.

Consumer sentiment has cratered as the misery index increases. This proves to many economists that the US is in a recession. Also, American households are feeling the negative consequences of a shrinking economy.

Many investors and financial analysts are looking at gold as a great investment to hedge against inflation. Today, gold prices jumped 0.20% to $1,796.10 per ounce. Silver spiked 0.23% to $20.44 per ounce. Platinum increased 0.45% to $945.60 per ounce, while Palladium rose 2.21% to $2,130.50 per ounce. Bitcoin climbed 1.58% to $22,880.70.

Do you think American households are financially suffering from an economic downturn? If so, in what specific ways?

Shipping Company Warns of Slowing Demand 

Aug. 3, 2022

Maersk warns of a tightening demand for goods as it witnesses warehouses filling up to capacity. The shipping company anticipates a deceleration in global shipping container demand as a result of lower consumer confidence.

Maersk said that the company filled 7.4% fewer shipping containers on vessels for the second quarter of 2022 year-over-year.

The information released by Maersk is viewed as a barometer for international trade by economists and investors alike. The conjunction of growing international geopolitical conflicts and China’s Covid-19 lockdowns exacerbated the situation, creating worsening bottlenecks internationally. 

While many investors believe that this drop in demand might alleviate inflation temporarily. They also worry it will lower global GDP even further. This could positively affect gold prices in the long term.

Today, gold prices dipped 0.20% to $1,768.40 per ounce. Silver fell 0.23% to $20.14 per ounce. Platinum decreased 0.45% to $909.00 per ounce, while Palladium sank 2.21% to $2,057.00 per ounce. Bitcoin rose 1.58% to $23,357.80.

Will inflation slow down as demand for international goods drops?

Tensions Rise Between US and China as Nancy Pelosi Arrives in Taiwan 

Aug. 2, 2022

Gold prices rally Tuesday morning as tensions rise between the US and China following Nancy Pelosi’s arrival in Taiwan. 

The CCP has declared Nancy Pelosi's arrival a direct violation of the One China Policy. This policy contains the US’s acknowledgment that Taiwan is a part of China.

Pelosi is the highest-ranking US to visit Taiwan in 25 years. The Speaker of the House’s visit is part of an Asian tour, which included Malaysia, Singapore, South Korea, and Japan. However, the CCP warned of “unbearable consequences” if Pelosi were to visit the island of Taiwan.

As a result of Pelosi’s arrival, China has initiated its Civil Defense Warning sirens.

The PLA has sent Air Force Su-35 fighter jets to cross over the Taiwan Straight. Furthermore, little is known about China’s plans to respond to the visit. 

Today, gold prices rose 0.30% to $1,786.70 per ounce. Silver fell 0.69% to $20.42 per ounce. Platinum decreased 0.99% to $926.50 per ounce, while Palladium sank 6.64% to $2,106.00 per ounce. Bitcoin dropped 1.16% to $23,003.90.

What actions do you think China will take in response to Nancy Pelosi’s visit to Taiwan? How will this affect gold prices?

Wall Street Analysts Predict Gold Prices will Rally this Week as the Federal Reserve Shifts Monetary Policy

Aug. 1, 2022

In a report conducted by Kitco News Weekly Gold Survey, investors and Wall Street analysts believe that gold prices will rally this week. The prediction comes as the price spiked by 2% while testing a crucial resistance point.

Investors suggest that higher gold prices have been led by the assumption that the Fed will reverse course on its monetary policy. They also believe the Fed will become dovish once again. 

Powell said he would slow the tightening of the money supply. This will happen as the economy begins to react to higher interest rates. 

If the Fed pivots on monetary policy, gold investors will become bullish, while bearish investors would leave the market. This may potentially lead to a short squeeze on gold.

Gold prices rose 0.27% to $1,781.60 per ounce. Silver fell 0.07% to $20.60 per ounce. Platinum increased 1.34% to $926.50 per ounce, while Palladium jumped 3.21% to $2,241.00 per ounce. Bitcoin grew 0.61% to $23,449.10.

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