Market information in recent days shows that gold and silver weakened together during a phase of market deleveraging, with the gold price falling to near a one-year low, indicating that even safe-haven assets can be hit by demand for cash.
In reviewing the changes on the board, MHMarkets noted that after volatility widened, the flow of funds became more dispersed.
From a trading-structure perspective, higher oil prices and inflation expectations are keeping the interest rate path relatively tight, and the opportunity cost of holding a non-yielding asset has become an important constraint on short-term valuation.
MHMarkets believes that investors remain sensitive to key data.
Whether a stable range can form after the sharp fall depends on whether selling pressure shifts from concentrated liquidation to normal trading, and on whether real interest rates continue to rise.
At a stage when information changes quickly, the direction of fund flows may shift before the price trend does.
It often takes time for the market to absorb new information.
Transmission between different assets may also differ from one phase to another.
Short-term swings and medium-term changes should therefore be observed separately.
It often takes time for the market to absorb new information.
Transmission between different assets may also differ from one phase to another.
Short-term swings and medium-term changes should therefore be observed separately.
It often takes time for the market to absorb new information.
Transmission between different assets may also differ from one phase to another.
Short-term swings and medium-term changes should therefore be observed separately.
It often takes time for the market to absorb new information.
Transmission between different assets may also differ from one phase to another.
Short-term swings and medium-term changes should therefore be observed separately.
Looking ahead, MHMarkets analysis says that fundamentals and valuation still need to be re-matched. A single move should not be simply magnified.
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