Since the climax of the corona crash was overcome in the financial markets in the summer of last year, investors in gold have not had much fun.

From the high of 2063.55 dollars almost exactly a year ago, the price slipped to below 1700 dollars.

With the inflation worries, the price of the precious metal received another boost, which carried it up to a little more than $ 1,900.

The price then crumbled again before falling surprisingly by 6 percent over the weekend.

Silver hit it too and, as always, a little harder.

The minus was 10 percent.

Martin Hock

Editor in business.

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The reason was the strong numbers from the American labor market on Friday.

This gives investors even more reason to believe that sooner rather than later the US Federal Reserve will recognize the “substantial progress” that it sees as a prerequisite for tighter monetary policy.

The yield on ten-year US government bonds rose significantly following the publication of the data.

And higher interest rates are not good for the price of gold, as higher yields on interest-bearing bonds make interest-free gold less attractive. Especially since gold has recently not been in great demand despite higher inflation rates and low bond yields. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, now sees an intensified downtrend due to a recent Death Cross formation where the 50-day moving average has fallen below the 200-day moving average. The speed at which investors reduced their gold holdings after the labor market data was released has been quite impressive.

Gold and silver were sold at the end of trading on Friday. An overhang was observed on Monday morning as some traders who had reacted too late might have sold in a panic at the opening, said John Feeney, of the Australian precious metals warehouse Guardian Vaults of the Bloomberg news agency. The current low liquidity, combined with numerous triggered stop-loss orders, led to a volatile opening and an unusually high trading volume.

However, Ozkardeskaya expects short-term support to form in the $ 1680-1700 range. There will be investors who buy gold after the recent slump to hedge against inflation and possible falling share prices. In fact, the gold price recovered significantly by 3 percent in the early hours of the morning, as did the silver price, which rose by as much as 6 percent. At just under $ 1750 and just under $ 24, precious metal prices are now trending sideways and are still a few dollars below Thursday's level.

It is a little early to comment, but the kind of "surrender" that has been seen now usually coincides with a significant low in the market, Feeney says. Against this, however, is the fact that there is now again interest in buying physical metals.