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The negative sentiment can be seen in recent headlines in the precious metal market. This week commodity analysts at ING noted that gold is in a technical bear market from its peak in March. At the same time, analysts at BMO Capital markets downgraded their gold and silver prices for 2023 by 6% and 11%, respectively.
If you are looking for the spark that will ignite the next bull run in gold, you don't have to look much further than the Federal Reserve. The U.S. central bank's aggressive monetary policy has driven real bond yields, which were around -1% at the start of the year, to around 1%. This, in turn, has pushed the U.S. dollar to its highest level in two decades. These are two mighty headwinds for gold.
In a recent interview with Kitco News, Robert Minter, director of ETF Investment Strategy at abrdn, warned investors that the Federal Reserve has already made its policy mistake and the global economy is just waiting for the fallout.