Gold and silver swing in a narrow range amid Jackson Hall’s anticipation
Gold prices have increased by 26% since the beginning of the year and silver by 30%, but the precious metals continue to trade in narrow ranges amid weak liquidity during the summer, with a different total economic background that contributed to keeping limited fluctuations." Both metal are supported by strong basics, but without an explicit catalyst for height." target ="_Blank"> Jackson Hall and the speech of the Federal President Jerome Powell. Reducing interest at a faster or larger pace, but the markets are still a high probability to reduce 25 basis points at the September meeting, while subsequent tracks remain unclear.
"Powell’s comments in Jackson Hall will be subject to severe scrutiny, especially in terms of the extent of federal tolerance of inflation if growth continues to slow down.". Mystery with the stagnation of the summer season to a stalemate, and the price during the past three months remained confined to the level of $ 3,350, supported by a strong investment request. But the gains of gold remained limited due to the strength of the dollar (which started to decline now) and the stability of treasury bonds for 10 years." target ="_Blank"> Silver , lacks momentum, although industrial demand and structural deficit, in addition to positive technical factors, provide a support base. However, the appetite of the speculators to increase the long positions retreated in the absence of a new catalyst. />
The demand for alloys and currencies remain stable, while the central banks continue to increase their reserves, with expectations of an annual increase of more than 1,000 tons for the fourth year in a row, providing a solid base that reduces the risk of decline despite the overall economy fluctuations. The industrial demand is about 3% this year, driven by a shift towards electricity and solar energy, even with the manufacturers of the photovoltaic cells to reduce the amounts of silver used in each cell through what is known as"Reducing". The centers of speculators in the Comxus Futures Contracts Market – consisting of a category "Money management" And the category "Other registrants" – The largest is still through the commodity sector, but at 22 million ounces remain much less than its peak last year at 31 million. More ..
