September 20, 2022, 10:26 PM
September 20, 2022, 10:26 PM
Despite slight month-on-month loss, gold prices hit lows not seen in about two years. The Precious Metals Monthly Index (IMM) for September moved sideways, falling just 1.8%.
Since May, gold started a long-term downtrend. In June, gold enjoyed a small rally, but it went into a sharp decline starting in July. Furthermore, between July and September, prices began to rise significantly, giving many investors new hope. However, the rally was evidently a dead cat bounce. As September approachedprices again continued their long-term downward trend.
In mid-September, gold officially hit its yearly low, confirming the dead cat bounce theory. Whether this will be true for other precious metals remains to be seen.. Although gold prices were in decline prior to mid-September, recent reports regarding the US economy and inflation hit the gold market hard.
Additionally, it should be noted that gold prices had been trading in historically high price ranges. Bullish forces began to die down after a rally, which led to exhaustion. Historically, this leads to a reversal to the downside, which the gold market saw this past week.
The biggest price movements of precious metals:
– US palladium bars fell 2.19%. In early September, prices stood at $2,009 an ounce.
– For its part, US gold bullion fell 3.12%. At the beginning of the month, prices stood at $1,711 an ounce.
-Indian gold bars also fell in price by 2.59%, reaching 630.22 dollars per 10 grams.
-Furthermore, US platinum bullion saw a big price drop of 5.13%. In early September, prices fell to as low as $850 per ounce.
