According to market analysts, the precious metal gold is officially in a bear market and prices could remain suppressed over the next few weeks. Moreover, while the macroeconomic backdrop has been gloomy, the popular safe haven asset has lost 17.50% in value against the U.S. dollar during the last four months.
The Canadian investment bank and financial services provider added:
Continued Fed hikes and less economic activity should see gold length continue to erode, with prices also likely to remain under pressure in the weeks to come.
Analysts at TD Securities are not the only ones who believe gold is in a bearish phase, as moneyweek.com’s main commentator on gold, commodities, currencies, and cryptocurrencies, Dominic Frisby, said gold was in a bear market on March 31, 2021. “It’s a bear market,” Frisby wrote at the time. “You get tradable rallies in a bear market, but a bear market is a bear market. They can go on for longer than you think. They can ‘make no sense.’ But they don’t go on forever.”
“We are selling (this gold) so that our importers are able to buy necessary goods for the country,” Rozhkova detailed in a statement on July 17.
What do you think about analysts saying that gold is in a bear market? Do you expect gold to sink lower than the current value? Let us know what you think about this subject in the comments section below.
