In recent days, the prices of precious metals have seen a sharp decline, reaching multi-month lows. According to Kurzy.cz, gold sold for 1834.2 dollars (approximately 44,865 korunas) per troy ounce on Monday afternoon. This was a significant drop from the beginning of May when it was priced at 2050.25 dollars (around 48,099 korunas) based on the exchange rate.
The decline in silver prices has also been noteworthy, with the price per ounce dropping from 26 dollars (610 korunas) to 21.43 dollars (524 korunas). A troy ounce is equivalent to 31.1 grams.
The strengthening of the US dollar is cited as the reason behind this trend. During the latest meeting, American central bankers decided to keep the introductory interest rate in the range of 5.25 to 5.5 percent,” said Tomáš Volf, an analyst from Citfin, in an interview with Právo.
The US Central Bank has indicated its intention to maintain high-interest rates for longer and potentially increase them further. Consequently, investors view the dollar as a more profitable asset than precious metals.
Volf added, “Once the US Federal Reserve starts expressing a dovish tone, the dollar will likely weaken, which could benefit precious metals. Gold could then rise above 2000 dollars and silver above 25 dollars.” However, this process may take some time, possibly several months.
This recent decline in gold and silver prices has captured the attention of investors and analysts alike. The impact of the strengthening US dollar and the prospects for these precious metals have become topics of keen interest in the financial world.
As the prices continue to fluctuate, it remains to be seen how the market will react and whether these metals will regain their previous value. Investors and experts will closely monitor the developments in the coming months to gauge the potential for a rebound in these commodities.
The decline in gold and silver prices presents both challenges and opportunities for investors. While it may be a cause for concern for those holding these assets, it could also provide a favorable buying opportunity for those looking to enter the market or expand their existing positions.