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Galaxy Futures: News-Driven Sentiment, Gold and Silver Ranging Widely
Gold and silver markets experienced wide fluctuations. Yesterday during the day, prices dropped sharply due to the escalation of Middle Eastern geopolitical tensions. In the evening, as the US signaled willingness to negotiate (despite Iran’s denial), prices stabilized and rebounded. The market was pulled by ongoing news and developments. However, since energy prices have already risen, the Federal Reserve’s scenario of maintaining interest rates for a longer period is gradually becoming the baseline outlook. Overall, Fed officials are becoming more hawkish, and similar attitudes are seen from the Bank of England and the European Central Bank, putting continued pressure on gold and silver prices from above.
From a technical perspective, both gold and silver have broken below their 120-day moving averages and are currently in a generally weak state. Looking ahead, it is expected that US ground troops will arrive in the Middle East this week. The outlook for war remains uncertain. Until the situation clarifies, combined with inflation risks and liquidity constraints, gold and silver are likely to continue facing “headwinds” in the short term. (Galaxy Futures)