On Monday, gold prices (gold stock) increased by more than 2%, helped along by a decline in the value of the United States dollar and bond rates. Recent lows in gold prices (gold stock) attracted investors and prompted a rally in silver, which may have been its most perfect day since the end of 2008.
The price of spot gold (gold stock) increased by 2.2% to $1,696.39 per ounce as of 1:37 p.m. Eastern Daylight Time (1737 GMT), which might be the day’s most significant gain since March 8. Gold futures in the United States increased by 2%, reaching $1,705.40.
The price of an ounce of silver reached $20.62, up 8.5% from its level in the middle of August.
According to Michael Matousek, chief trader at U.S. Global Investors, “for the whole of September, everything took it on the chin” and was over-sold. “For the whole of September, everything took it on the chin” Now, individuals are searching for chances, particularly non-long-term investors of these metals who purchase on dips and sell on rallies, he added. People are looking for opportunities because the market is now volatile.
The weakening of the dollar helped boost the demand among international purchasers for gold priced in greenbacks. Demand for gold, which has no income, increased after rates on benchmark 10-year U.S. Treasury notes reached their lowest level in more than a week. [US/][USD/]
A retreat in the safe-haven currency has offered gold some reprieve, as gold bullion prices have staged a mini-recovery since falling to their lowest level since April 2020 last week. This is the lowest level they have been at since April 2020.
According to Matousek, gold (gold stock) has found support due to its recent loss being less severe than the broader market’s decline. He also mentioned that some market players now believe the United States Federal Reserve may reduce interest rate rises, which would boost gold (NYSE:GOLD).
Manufacturing activity in the United States rose at its slowest rate in more than two and a half years in September, probably owing to higher interest rates to control inflation, which depressed demand for goods. This tendency boosted metals’ safe-haven demand.
According to Jim Wyckoff, senior analyst at Kitco Metals, “You’re going to have to see a close back over $1,700 to get the (gold stock) bulls rejuvenated a little bit, and even that doesn’t change the technical stance all that much… the bears are still in very strong technical control.”
Palladium jumped 3.6% to $2,236.14. Platinum’s price per ounce increased by 4.7%, reaching $899.46.
Featured Image: Depositphotos © Iurii
Author Valerie Remorosa 
