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Gold has recovered from a recent drop due to lower US and UK inflation, with markets believing interest rates have peaked and might be reduced in 2024. US inflation rose 3.2% in October from 3.7% in September, bringing the US closer to its 2% objective. The weakening dollar has driven gold to its highest level in almost a week, reaching $1,974.24. The UK CPI also showed a low reading, with October CPI being 4.6% compared to 6.7% in September. High interest rates may be hurting the UK economy, which was flat in Q3. Markets expect UK rates to fall in May 2024, similar to the US. The pound has had a wild week, with the lower dollar pushing it to a monthly high of $1.2504, but this morning's news pulled it back to $1.24597. The strengthening pound pushed gold to a monthly low of £1,570.47, but gold recovered somewhat this morning and is back over £1,580. While currency strength has driven gold prices in 2023, gold and silver have been waiting for interest rates to peak and then decrease, which could lead to more gains in 2024 if the trend continues.

Gold rose against the Dollar, reaching 1- and 10-week highs, respectively, as US data indicated a slowdown in the world's No.1 economy. The Gold/Silver Ratio has averaged 58 ounces of silver to 1 ounce of gold, rising from 31 in the 1970s to 81 this decade. Retail sales slipped 0.1% from September, and the odds of a Fed rate cut in May are 2-in-3, with less than 14% of betting on the June 2024 decision expecting no change from the current 2-decade high of 5.50% per annum. Philip Newman, managing director at independent consultancy Metals Focus, said that the bulk of year-to-date redemptions reflect continued monetary tightening and its consequent boost to yields, especially in real terms. The giant SLV silver ETF shrinks 0.2% in size, while the giant GLD gold ETF remains at its largest in almost two weeks. Total silver demand is forecast to ease by 10% in 2023, with gains in industrial applications offset by losses in all other key segments.

In the latest market developments, gold faced a decline exceeding 1% on Friday, marking its second consecutive week of more than a 1% loss. This downward trend can be attributed to a diminishing demand for safe-haven assets and the perceptible shift in stance from Federal Reserve Chair Jerome Powell towards a more "hawkish" approach. The palpable impact of these market dynamics was evident in the fall of palladium prices, which dipped below the significant threshold of $1,000 per ounce, reaching a five-year low. This decline was propelled by a prevailing belief that the surging growth of electric cars would result in excess supply, prompting automakers to opt for the more cost-effective platinum for their auto catalysts. Spot gold, a key indicator of market sentiment, experienced a decline of 1.1%, settling at $1,936.09 per ounce, culminating in its most challenging week in six years with a cumulative 2.8% drop. In the U.S. market, gold prices concluded the day with a 1.6% decrease, closing at $1,937.70, while silver exhibited a parallel decline of $1.8% to $22.21. The subdued performance of gold during this week can be attributed to the assertive stance adopted by Powell, signalling a more aggressive approach, prompting investors to embrace higher-risk assets. Notably, concerns in the Middle East have also played a role in the $70 reduction in gold prices since it briefly exceeded $2,000 levels the previous week. Further contributing to gold's challenges are the upward trajectories of both the standard 10-year U.S. Treasury yield and the dollar index for the week. Investors, seeking returns, are drawn away from gold, which, as a non-yielding asset, becomes less attractive in a climate where interest rates are on the rise. As we navigate the current market landscape, it appears that gold is poised to continue its sideways to lower trajectory unless there are significant global events, a series of weak U.S. economic reports, or explicit signals from the Federal Reserve indicating a cessation of rate hikes. Investors will keenly watch these factors as they assess the near-term outlook for the precious metal, recognising that the interplay of global events and monetary policy decisions remains paramount in influencing the direction of gold prices.

Over the next ten years, the need for silver in industry, jewellery making, and making cutlery is expected to almost double, with a 42% rise between 2023 and 2033. The demand for silver in industry will rise by 46%, which is due to the tech industry's expected 56% growth in output. These industries used 371.5 million ounces of silver in 2022, which is 67% of all the silver used by businesses. The use of silver in solar energy and electric cars will help this category move forward. By 2027, solar manufacturers will probably need more than 20% of the current yearly supply of silver. By 2050, making solar panels will use up about 85–98% of the world's silver supplies. Changing needs for silver in soldering alloys will also drive industrial demand; in 2022, this will make up 9% of all industrial demand around the world. Over the next ten years, the demand for silver jewellery is expected to rise by 34%. India will continue to make the most silver jewellery in the world. The amount of cutlery that is made is expected to rise by 30% over the next ten years, with India accounting for 43% of that growth. Every type of silver demand hit a new high in 2022, but supply stayed the same and mine output fell by 0.6% to 822.4 million ounces. Silver's price doesn't show how supply and demand are changing right now, and it is way too low right now. Investors should be bullish on both gold and silver because the Federal Reserve can't bring inflation back to its goal level of 2%, demand is growing, and the supply of silver is decreasing. This could cause the price of silver to go up. Because of how supply and demand work, the skewed silver-to-gold ratio, and the fact that it's likely the Fed won't be able to stop price growth, silver between $22 and $23 looks like a great time to buy.

After Hamas's surprise attack on Israel, the prices of gold and silver went up very quickly. More fighting is happening in the area, which could have effects around the world. The dollar went up and bond rates lowered as investors rushed to safe investments. Silver and gold both went up 5.7% and 2% in GBP since their lows last week. Gold has gone up 2.9% since its low point last Friday in USD, and silver has gone up 6.2% since its low point on Thursday. The war is likely to have big effects on the economy and on politics around the world. Because of problems with sources, the prices of oil and gas have gone up, and this will make inflation even worse. In response, the US has said it will send more armed ships to the area, which makes people worry about the world's failing economies and the war between Russia and Ukraine. The stock markets don't seem to be affected by what's going on, and the drop in bond prices has made them feel better. Fed officials' words that the recent rise in bond yields might make them decide not to raise rates have given people hope that the peak has been reached. Gold and silver have stopped rising after a big jump, but they have kept their gains, which shows that people still want safe-havens. Wars are always a big reason why gold prices go up or down. The spring of 2022 and the Russia-Ukraine war are two examples.

Gold remains a popular investment due to its stability and appeal to both experienced players and central banks. The gold market has bounced back after a drop, indicating growing geopolitical concerns. Central banks have been quietly building up their gold stocks, making gold a basic backup asset. This interest in gold increases prices and shows the long-term value of the precious metal. However, the gold market is still vulnerable to changes, with the Federal Reserve's upcoming meeting potentially causing instability. Interest rates, which affect gold prices, will be a main topic. Investors need to be cautious due to the market's volatility. Gold continues to attract people who know its value as a way to diversify investments during difficult times. Technologically, the gold market appears to be making an ascending wedge, indicating a breakout. If the price breaks below the recent trend, there could be a short-term drop. The 50-Day Exponential Moving Average (EMA) is likely to act as support. If the price breaks above the top of the candlestick, gold prices are likely to move towards $2050. Gold remains a valuable asset, even with global situations changing and central banks' actions having complicated effects on each other. The current rise in gold prices shows that it is still a good investment for diversification and is a sought-after safe haven in the world of investments.

Investment experts are encouraging people to begin investing in precious metals over the next year. Though gold and silver tend to remain a steady and low-risk investment throughout most economic periods, people are starting to look at 2020 as the year to really put their money into precious metals. Off to a good start  Both gold and silver entered 2020 at a very good start as a direct result on the increase in prices towards the end of 2019. Before the new decade began, the price of gold in particular had risen to 15%, a fourth year in a row of the metal rising in price. Due to this increase, the price of gold and silver in 2020 are forecasted to rise even further. The effect of the political landscape  It has been predicted that 2020 will bring a very rocky political landscape. With Brexit, a US election, the effect of COVID-19 and the rising tension on the international stage, political unrest is forecasted for most of the coming year. As known in the industry, a turbulent political landscape can lead to a soar in gold and silver prices, as well as investment in both metals. This is because political tension both domestically and internationally disrupts economies. Foreign direct investment tends to decline when a country is facing political issues, which in turn slows economic growth and reduces the value of international equities. A slower economy can lead to a decline in currency, reducing exports, debt repayments and impacting bond markets. All of this reduces the value of financial assets that investors tend to rely on, making them turn toward gold for stability in turbulent times. On this subject expert Robert Kiyosaki has stated that: “silver is the most undervalued, lowest-risk, best investment of all asset classes” and that investing in precious metals is the best way to “…prepare for, and profit from the turbulent economic times we see for the future.” The start of a commodity boom According to commodity strategists, a large commodity boom within the gold and silver markets is due between 2020 and 2023. As a result, more people will be investing, creating a type of mania that will lead to a major increase in gold and silver prices. This surge in pricing is set to occur soon, so investment experts are encouraging people to start purchasing gold before the price soars. According to James Anderson writing for ValueWalk, during this commodity boom “the mania for these two precious metals should reach historic levels outperforming any bullion bull market prior and probably to come in any reader’s lifetime.” Start investing It is therefore clear that in order to jump start the commodity boom and get ahead of the mania that is due in 2020, investing in gold and silver now is an extremely savvy investment decision to make.

  The history of gold as a commodity Since humans began trading and exchanging goods, gold has been in circulation as an incredibly valued commodity. The gold markets date back to as early as 3000 BC.C, initially used as currency and eventually melted and reshaped to form jewellery. Gold quickly began to represent wealth throughout the world, with metal based currency as one of the most popular ways to show this in modern times. Coins in Great Britain were introduced in 1066, with their value based upon the amount of gold or silver that they represented. With a high rate of destructibility, most gold ever mined is still in circulation now; recycled gold that has been reshaped makes up a third of the global supply. Despite this, gold is still a limited resource, making its value much higher than other precious metals. To this day, gold is still vital in the modern economy, even if it is no longer present in everyday transactions. It has preserved wealth throughout generations; something that cannot be said for other currencies and commodities. The crisis commodity  Known as a ‘crisis commodity’, gold is an investment that people tend to make during times of political and economic uncertainty. These times reduce confidence in the global economy and banks, lowering the overall value of the financial assets people usually rely on. As gold is outside of the banking system, people turn to it for stability. A tangible asset, gold holds it value regardless of crisis or inflation, offering consumers, investors and enterprises a safe form of financial diversification. By diversifying your investment portfolio, you lower your overall investment risk, protecting your assets. A rise in value With the price of gold increasing by 15% in 2019 and expected to rise further in 2020, strategists are predicting a large commodity boom between 2020 and 2023. In addition to this, as a result of Brexit, the US election and other political events occurring over the next year, increasing political unrest is also anticipated. Investment experts are saying that now is the perfect time to invest. They are advising people to use gold as a type of insurance to rely on in turbulent times, a way to preserve their wealth against the changes of the economic tide - and it is best to invest now before the prices rise during the boom. Making a profit Many people look to gold investment as a way of making a profit. If you buy gold when the value is lower and then sell off your investment once the prices rises, a large profit can be made if done correctly. This method does come with a risk, as despite the stability there is always a chance of the value dropping once you have purchased your gold. However, as detailed above, the price of gold is predicted to surge. So if you want to make a profit on your investment, now is the time to buy. Whether you’re new to gold investment or a loyal bullion buyer, BuyBullion24 is the perfect platform to invest, collect or save. We’d be happy to help you make your decision, so contact us if you require any further support.

 As the economy faces one of its biggest threats since the 2008 global economic crisis, panic leads people to turn to gold as a lower-risk investment. The economic effect of COVID-19  The Wuhan-born virus took effect on Chinese production throughout the start of  2020, leading to huge hits on global businesses. Those dependent on Chinese factory exports were hit the hardest, with corporations such as Apple and Microsoft announcing the impact of the disease on their supply chains and production. When considering the sheer number of businesses dependent on Chinese exports, the effect of COVID-19 reaches across industries, from luxury goods to car manufacturing. The airline industry is having to deal with the restrictions put in place by governments, preventing people from travelling in an attempt to halt the spread of the virus. This has led to entire fleets being grounded, and the possibility of airline companies needing to be bailed out by the government. This and a multitude of other socio-political factors of the virus has all had a large impact on the stock market, affecting the global and local economies throughout the world. According to the Financial Times, the US has seen its worst week since 2008, and direct drops have been noted in Asia-Pacific equities and US stock futures. Markets affected include Dow Jones, FTSE 100, Topix in Japan, Australia’s S&P/ASX 200, South Korea’s Kospi and S&P 500 futures. As a direct result of this economic instability, investors are turning to gold. Surge in gold pricing The price of gold has been noted by experts to have increased by 9% reaching its highest level since 2013. Gold has always been viewed as a safe investment for those looking for a stable form of investment insurance. With the instability of the current stock market, the demand for precious metals - particularly gold bars and coins - has seen a direct increase. It has been predicted that in the context of this global panic, investment in gold will continue to rise, and thus so will its price. But investment experts are warning that despite its reputation as a stable asset, gold remains volatile, with its price resting solely on how much demand it has and the price people are willing to pay. With a high surge continuing to rise, people must be prepared for some falls to occur as a result; especially if people start to sell with the intention of making a profit. Our advice The surge in price and predictions of a continuous rise suggest that now is a good time to start investing in precious metals. One must remain cautious as with any investment to ensure that you fully comprehend the risks and seek advice where possible. However outside of the context of the coronavirus, experts still predicted a gold boom for 2020. Therefore despite the obvious effect of COVID-19, an increase in price and demand may still remain predicted for the rest of the year.