Reports on Monday detail that the zero-Covid policy protests in China have lowered market sentiment as U.S. equity markets show the top four Wall Street indexes are struggling. The global crypto market cap is down 3.5% and getting awfully close to dropping below the $800 billion mark. Precious metal prices, on the other hand, like gold and silver have remained steady and since Nov. 3, an ounce of gold has jumped 7.06% higher in value against the U.S. dollar.
Gold and Silver Hold Steady Amid Turbulent Global Economy, Precious Metals Outpace Stocks and Crypto Assets
Financial markets on Monday have been shaky as far as stocks and cryptocurrencies are concerned. Precious metals like gold and silver, however, are holding steady amid the craziness in the world.
Some reports are citing Monday’s market shake-up to the civil unrest in China over the country’s zero-Covid policies. Indexes like the Dow Jones, Nasdaq, S&P 500, and NYSE have all opened the day in the red.
Additionally, the crypto economy is close to dropping below the $800 billion zone as bitcoin (BTC) is down over 2% during the last 24 hours. Ethereum (ETH) has shed 3.82% during the last day and the entire crypto economy has lost 3.5% against the greenback.
An ounce of gold is trading for $1,744 per ounce, which is up more than 7% against the U.S. dollar since Nov. 3. On that day, a troy ounce of fine gold was exchanging hands for 1,629 nominal U.S. dollars per unit.
Silver too has gained in USD value since that day as an ounce of fine silver was under $20 per unit on Nov. 3. Today, silver is exchanging hands for 20.99 nominal U.S. dollars per unit.
Silver’s rise since that day outpaced gold’s jump in value as silver increased by 7.91% during the last 25 days. While the world watches the events in China unravel, the U.S. employment report is due this Friday.
Additionally, the U.S. Federal Reserve’s chief Jerome Powell plans to discuss the U.S. economy this Wednesday. Reports indicate that some believe Powell will reveal plans to slow down interest rate hikes.
With gold doing so well amid the macroeconomic backdrop, some believe a ‘Santa rally’ could be in the cards. So far, during the last 25 days, both precious metals (Ag, Au) are doing better than stocks and crypto assets.
What do you think about the two precious metals’ market performances during the last month? Let us know what you think about this subject in the comments section below.
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Author: Jamie Redman
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