SMM News: due to the strong rebound of the US dollar, gold and silver suffered a frenzied sell-off this week, with gold futures down 4.9%, the biggest weekly decline since March 13, while silver futures fell 14.9%, the biggest weekly decline since March 13.
The dollar index rose nearly 1.8% this week, the biggest weekly gain since April, while the Bloomberg dollar spot index rose 0.3%, erasing Thursday's losses, rising on the fifth day of the last six sessions and the biggest weekly gain since March.
Spot gold fell below the important support level of $1900 on Monday, falling nearly $70 near the 1880 mark at one point. It briefly returned above the 1990 mark on Tuesday and fell again on Wednesday and Thursday, especially when it fell to its lowest level since July 22 on Thursday. It fell back after hitting a high on Friday and finally closed around 1860.
Spot silver fell even more sharply: it fell below 26, 25 and 24 on Monday and returned above 24 on Tuesday, but traded below $24 on Wednesday, Thursday and Friday. in particular, it fell to a low of $21.64 on Thursday, the lowest since July 22, and the decline slowed on Friday to close below 23.
Marcus Garvey, a strategist at Macquarie Bank, said that while gold is generally considered a safe haven, the Fed's commitment not to raise interest rates for the next few years has changed the way gold prices fluctuate. "in the current environment, gold will fluctuate as risky assets rather than defensive assets," he said in a telephone interview.
Naeem Aslam, chief market analyst at AvaTrade, said: "the main reason for the decline in gold futures prices this week is the strengthening of the dollar." Aslam said the Fed's "monetary policy confusion led to a rise in the dollar index, which magnified the weakness of gold prices."
In response to the trend of gold prices, Carsten Fritsch, an analyst at (Commerzbank), a German commercial bank, said that after this week's slump, both gold and silver were oversold. "the 100-day moving average has been reached, so it is likely to reverse and pick up. Gold prices are likely to rise much more than fall in the coming weeks. "
Brian Lan, general manager of GoldSilver Central trading, said gold remained bullish for a long time as the epidemic continued and interest rates were low. "Gold is supported around $1845 / oz below and $1900 / oz above resistance."