Precious Metals Rebound

Precious Metals Rebound

February was a whacky month for the price of precious metals with gold dipping as low as $US1812 an ounce after reaching a peak of $US1956 in the month of January with punters awaiting the breach of $US2000 an ounce.

Silver reached a peak of $US24.56 in January before succumbing to a dip of $US20.85 in February despite silver mines reducing and manufacturing increasing it wasn't enough to continue to the bull run.

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March marches back

As March broke so to did the bottom of the market as precious metals rose once again on the back of more interest rate rises and news inflation is still much out of control.

The official figures are out and demand for gold grew 18% as banks and retail investors drove the prices up to an 11 year high. 4,741 tons of Gold were purchased with the brunt of it from Central banks adding the precious metal to their stock pile in wake of turbulent financial times.

The announcement of further interest rate hikes has played a large role in cooling Gold purchases as people focus on paying down debt and the US dollar strength increases. The factors greatly impact Golds performance despite the majority of purchases coming from outside of the US.

IS another bull run on the cards?

It is likely that another bull run on gold is on the cards with Chinese markets a flurry with gold purchases and China announcing it to has purchased 62 tones of gold.

Further issues arise with Chinese nationals having their bank accounts frozen which further drives demand for gold and a means to protect wealth from banks and governments.

2022 was a big year for gold and many punters are still tipping Gold will breach $US2000 per ounce and never look back.

image sources provided supplemented by canva pro. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

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