Bitcoin remains a major focus for our readers, but precious metals gold and silver have also risen sharply in value in recent days, both reaching their highest levels in four weeks.
This rise coincides with a weaker US dollar and a slight decline in government bond yields. Currently, gold is trading at 2,717 USD per ounce and is approaching a key resistance. Silver is at 30.67 USD per ounce.
Inflation Report and Impact on Precious Metals
A major driver of the recent price increases is the inflation report from the United States. Similar to Bitcoin, the figures point to a reduction in inflationary pressures. This fuels speculation that the Federal Reserve may ease its interest rate policy, weakening the US dollar. Traditionally, a weaker dollar drives higher prices for precious metals such as gold and silver.
Geopolitical developments also play a role. The news that Israel and Hamas are working on a ceasefire after 15 months of conflict in Gaza has positively influenced the financial markets. Gold and silver are benefiting from this as safe havens. There is also an increasing demand for gold in China, due to a weakening yuan and problems in the real estate sector. Many Chinese investors see gold as a means to protect their assets.
Technical Outlook: Gold and Silver Remain Strong
From a technical perspective, the trend for gold and silver remains positive. Gold is moving in an uptrend and is showing strength. The next important resistance is at $2,788 per ounce, which is also the record level. A break above this level could open the way to new highs. On the downside, $2,650 per ounce acts as an important support level in the short term.
Silver is showing a similar trend. The price continues to rise and is approaching a resistance level of $33.33, the December high. A break above this barrier could lead to further increases towards $35.00.
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