What is the reason for the next drop in the price of gold?
2022 has become one of the busiest periods in the global economy and finance. Falling stock market prices, record inflation and economic recession.
All this will usually lead to investors starting to transfer their capital into the most stable assets, such as gold.
This is what happened in practice: in 2022, demand for the precious metal increased by 18% and reached its maximum over a 10-year period.
Demand is not expected to decline in 2023 either; most national banks plan to increase their gold reserves, and the population is buying gold bars by the kilogram. And all this against the backdrop of a reduction in supplies from Russia.
It would seem that in such a situation the price of the precious metal should have long ago broken all records and gone far above $2,000 per Trotsky ounce:
But, despite this, a downward trend has formed and gold has already fallen in price to $1,845 per ounce.
Reasons for the fall in gold prices
If someone buys something, then his main task is to buy this asset as cheaply as possible and at the best price.
Therefore, one of the reasons for the unreasonably low price of gold at the moment is manipulation of the exchange rate, the so-called bearish game:
Market makers enter into large gold trades for sale with deferred delivery of goods, in which the trader does not have physical gold in stock. Such a transaction is closed after the price falls by purchasing gold. At the same time, panic is created on the stock exchange, which helps support the downward trend.
discount rates by national banks ; we can say that this step makes money “more expensive” by creating a deficit.
It is clear that this situation cannot last long; national banks will gradually move to lower interest rates and this will become one of the signals for an upward trend. In this situation, the bears are unlikely to be able to compete with the bulls, and the price of gold will begin to rise.
Therefore, we wait for news and watch the charts of the XAU/USD pair - https://time-forex.com/grafiki
How to buy or sell gold on the exchange - https://time-forex.com/interes/torg-zoloto-terminal