TechFlow News, March 21: According to Bitget market data, spot gold faced heavy selling pressure and broke below the $4,500/ounce level, declining over 3% intraday; spot silver plunged 6.84% intraday, currently trading at $67.845/ounce.
Spot gold fell below the $4,500/ounce level amid a strengthening U.S. dollar and reports indicating that the U.S. has completed detailed preparations for deploying ground troops in Iraq—further fueling market concerns about rising oil prices, inflation, and consequent interest rate hikes.
Independent precious metals trader Tai Wong stated: “As market anxieties rise ahead of the weekend, gold and silver prices are being dragged lower. Following this week’s sharp correction triggered by rate-hike concerns, precious metals have exhibited particularly volatile price action. Prices are expected to consolidate soon, though the process will likely be bumpy.” Major global investment banks believe the likelihood of interest rate hikes by the European Central Bank (ECB) and the Bank of England (BoE) is increasing—with the earliest possible timing as early as April.
The U.S. Federal Reserve held rates steady on Wednesday and forecast higher inflation, while Chair Jerome Powell noted that the path forward for monetary policy faces unusually high uncertainty due to the impact of the war.
