TD Securities Analyst Says Gold Sell-off May Not Be Over — Carry and Opportunity Cost Could ‘Drive Capital Away’ – Markets and Prices Bitcoin News

Precious metals markets continue to flounder this week as gold’s value per troy ounce has slid by 6.53% in value against the U.S. dollar during the last month, while silver has shed 2.34% in 30 days. Investors expected the opposite, as gold and silver have suffered in the face of rising inflation and hawkish central bank policies.

Precious metals continue to lose value

Over the past 24hrs, the U.S. nominal dollar value per troy-ounce of gold and silver has declined between 0.18% and 0.27%. In the last 30 day, gold prices have fallen 6.531% versus the U.S. dollars, while silver has lost 2.34% compared to the greenback.

TD Securities Analyst Says Gold Sell-off May Not Be Over — Carry and Opportunity Cost Could 'Drive Capital Away'
Spot price for gold on September 26, 2022

While global inflation is rampant, and markets are volatile around the globe, precious metals face losses. In addition, the U.S. Federal Reserve increased the benchmark bank interest rate by 75 basis point (bps) on Wednesday. The U.S. Dollar Currency Index rose to a record 20 year high Friday.

TD Securities Analyst Says Gold Sell-off May Not Be Over — Carry and Opportunity Cost Could 'Drive Capital Away'
CFD Silver price as of September 26, 2022

Bart Melek of TD Securities’ global head of commodities markets strategy stated to Kitco News Friday that the Fed rate rise has had a net effect on gold.

“We’ve seen significant increases in the markets’ estimates of what the federal funds rate will do over the next year. It is quite a big difference from a month ago, and it is in line with the Fed being more aggressive,” Melek said. Melek, TD Securities’ commodity market strategist, added:

Rates are on the rise. That’s negative for gold. The high costs of capital and the low chance cost will drive people away.

Silver and Gold Daily Moving Averages Signal ‘Bearish’ Sentiment, Analyst Believes Gold Will ‘Rebound Next Year’

RM Capital Analytics strategist Rashad Hajiyev believes gold’s price should be higher. Last week, the analyst expected a rebound following gold’s downtrend against the U.S. dollar.

“Gold should be trading above $1,690 within 1-2 days if the recent sell-off is a breakdown,” Hajiyev tweeted last Tuesday. “Gold holding around key support & GDX adding 1.75% yesterday on a flat gold price suggests that the metal is on the cusp of a major move higher.” Six days after Hajiyev’s tweet, gold has not seen a significant move higher.

Financial advisor Renuka Jain told her 61,300 followers on Twitter that her firm expects gold’s value to rebound next year. Further, the advisor expects that the U.S. central banking will reduce rates by 2023.

“For 2023, the gold price outlook is more positive,” Jain detailed. “Not only do we expect the U.S. dollar to weaken, but we also expect the Fed to start cutting rates in 2023. Additionally, we anticipate lower U.S. real yields. As a result, gold prices are likely to rebound next year or even earlier.”

An analysis of the Sunday gold and silver price on shows that both daily moving averages, or DMA, for these precious metals indicate bearish signals. The analysis notes that silver has held up better than gold but the precious metal has “real resistance” at 22 Nominal U.S. Dollars per troy ounce

“[For gold] it’s bearish that the 50 DMA ($1743) is well below the 200 DMA ($1831); however, the market rarely goes in one direction without a pause,” the analyst writes. “Expect a short-term bounce. The bounce cannot be trusted until the current price ($1655) at least breaches the 50 DMA and more likely the 50 DMA needs to break the 200 DMA to confirm a new bullish trend.”

This story contains tags
analyst, Bart Melek DMA DXY gold, Gold Mining Prices, Gold Spot, Greenback and Kitco Markets, Markets, Prices, Precious Metals (PMS), Rashad Haajiyev Renuka jain, Analysis, Silver, Silver Prices Silver spot, Spot Prices TD Securities, U.S. Dollar Index, DXY), US Dollar

Do you have any thoughts on the market’s recent performance of silver and gold? Is it possible for precious metals prices to continue rising or falling? We’d love to hear your opinions in the comment section.

Jamie Redman

Jamie Redman, a Florida-based financial journalist and news lead at News is Jamie Redman. Redman is an active participant in the cryptocurrency community from 2011. Since 2011, Redman has been an active member of the cryptocurrency community. Redman is a prolific writer for News, with over 6,000 articles on disruptive protocols.

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