Gold: Rebounds from one-year Low as rate risks persist – ING

ING strategists Warren Patterson and Ewa Manthey note that Gold fell to a one-year low late last week as surging Oil prices fueled inflation concerns and expectations of higher-for-longer interest rates. Technology share losses added to selling pressure as investors liquidated positions to cover losses elsewhere. Although Gold has since rebounded, the strategists warn that elevated energy costs, rate expectations and broader market liquidation risks remain key headwinds for precious metals.

Precious metals under macro pressure

"Gold fell to its lowest level in a year at the end of last week as oil prices surged amid inflation concerns and expectations that interest rates could stay higher for longer. Prices dropped 3.65% to $3,874.62/oz, with the sell-off in technology shares adding to pressure as investors reduced positions to cover losses elsewhere."

"For now, higher energy prices, rate expectations and the risk of further liquidation across broader markets remain headwinds for precious metals."

"Silver has been hit harder, sliding more than 6% and extending its October decline to roughly 18%. The widening gold-silver ratio also points to gold continuing to outperform silver during the latest precious-metals correction."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)