The price of two common precious metals, gold and silver, is trying to bounce back from a sharp decline last week. The world’s instability and declining dollar have increased demand for safe-haven assets like gold and silver. While silver prices increased 1% to about $32.40 an ounce on Monday, gold prices in India increased by more than Rs 2,000 per ten grams.
Due to persistent worries about the economic relations between the US and China, the US currency is depreciating, which is affecting gold prices. To boost commerce, the US president has stated that he is willing to lower import duties on Chinese goods. Reiterating that Washington must first remove all unilateral measures, China suggested that it might consider starting trade talks with the US.
At the Federal Reserve’s policy meeting tomorrow, investors are likewise anticipating that interest rates will not move. Powell’s dovish remarks during the press conference are likely to increase gold prices since investors turn to gold when interest rates decline.
Gold trades 0.67% higher than the close of the previous day on Tuesday, while silver is up more than 1.67%. At 101:1, the gold-to-silver ratio is significantly higher than the typical 70:1 ratio. A breakout from present levels of silver could occur if the US-China trade dispute is resolved and economic activity rises.
